Dubai group to buy 60% in Thomas Cook India

By agencies   |   Tuesday, 13 December 2005, 20:30 IST
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NEW DELHI: The news about the Thomas Cook India sell-off is back with a bang. Dubai-based investment company, Dubai Investment Group, in which the government of Dubai has a stake, is believed to be buying out the German parent in the Indian travel company. The Dubai-based investment company is reportedly set to pay $92 million for a 60 percent stake in Thomas Cook India. It would then make an open offer of $35 million for another 20 percent stake, as required, under Indian take-over laws, reports said. However, when contacted, Thomas Cook AG, the Germany-based parent company, refused to comment on the development. Dubai Investment Group could not be contacted for comments. Thomas Cook AG, Europe’s second-largest travel company, is a 50:50 joint venture between German carrier Lufthansa and German retail major Karstadtquelle. It has 60 percent stake in Thomas Cook India, with FIIs owning 11.71 percent, PSU bank SBI has 8.29 percent stake, and the remaining 20 percent is with the public. Some more buzz doing the industry rounds has been that the parent company has decided to hive off its Indian business into two parts — one dealing with the foreign exchange business and the other taking care of travel-related services. However, a Thomas Cook AG spokesperson refused to either deny or confirm any such move. The German parents of one of the foremost travel brands in India had recently appointed the consultancy company, Boston Consultancy Group, Europe to chalk out the roadmap for the sell-off of India operations. This follows differences in valuation put forward by the parent company and potential suitors. Several bidders, including Indian travel companies like Kuoni India, Cox & King, TUI, and equity funds like Blackstone, ICICI Venture Funds and Carlyle, were believed to have evinced interest in Thomas Cook India. Interestingly, the foreign exchange business accounts for nearly 70 percent of the company’s revenues, which is also into outbound and inbound travel, aircraft charter business and travel insurance.