Tata Capital to sell forex, travel services operations to Thomas Cook
25 September 2017
Tata Capital is selling its entire foreign exchange and travel services operations to Thomas Cook (India) Ltd, as part of a group-wide restructuring exercise
Tata Capital today signed a definitive agreement to sell the entire shareholding in its two wholly-owned subsidiaries - Tata Capital Forex Limited (foreign exchange) and TC Travel and Services Limited (travel services) - to Thomas Cook (India) Ltd.
In a filing with the Bombay Stock Exchange (BSE), Thomas Cook India also said its board of directors has approved signing an agreement with Tata Capital to acquire 100 per cent stake in Tata Capital Forex Ltd and TC Travel and Services Ltd.
However, the financial terms of the deal were not immediately disclosed.
Thomas Cook is India's leading integrated travel and travel related financial services company. The two acquired units, with operations in 26 locations and about 300 employees, will continue to be run by the Tata Capital management, in consultation with Thomas Cook, till the closing date when the share sale will be consummated.
''Travel and forex services are growing sectors in the Indian economy. We are confident that Thomas Cook, with its large scale and network, will build these businesses further and help them reach their potential," Praveen Kadle, managing director and CEO, Tata Capital Limited, said.
''Our acquisition of Tata Capital's Forex and Travel companies serves to further strengthen the Thomas Cook India Group's leadership position in the Travel & Foreign Exchange sector in the country. This also gives us the opportunity to continue to serve the strong corporate portfolio of both Tata Capital Forex Limited and TC Travel Services Limited – large corporate houses, including flagship Tata Group companies; as also a set of new retail customers,'' Madhavan Menon, chairman and managing director, Thomas Cook (India) Limited, said.
''The acquisition creates clear opportunities, including a significant increase in scale and network reach, volume/ buying advantages as well as technology gains, all resulting in stronger customer service and stakeholder value,'' he added.