Thomas Cook India to acquire Travel Corporation
· Establishes a clear leadership position in the industry
· Strengthens inbound operations
· Consolidates travel trade business in India
Mumbai, Friday December 01, 2006:
Thomas Cook (India) Ltd (TCIL), the country's leading travel solutions company today announced its decision to acquire Travel Corporation (India) Pvt. Ltd. (TCI). The company proposes to acquire the entire shareholding of TCI, which post acquisition will be a wholly owned subsidiary of Thomas Cook India. The acquisition is subject to the approval of the hareholders of Thomas Cook India. The all cash deal is worth Rs. 182.45 crores.
Mr. Udayan Bose, Chairman Thomas Cook India said "The combination of Thomas Cook India and TCI would bring together two very successful and customer focused companies, who are committed to providing travelers across India with very best travel products and services". He further added "The TCI acquisition will consolidate our position in the inbound travel segment, which is in line with our objective to establish Thomas Cook India as among the largest players in India. In view of the increase in inbound tourism that the country is witnessing, for us to be able to offer two platforms for inbound traffic will be a big advantage in the market".
Mr. Jehangir Katgara, Director TCI said "Mergers and acquisitions are strengthening organizations all over the world and India is no exception. In view of the future of the travel industry, the complementary strengths of both the companies will leave the group well placed to meet any challenges".
Mr. Katgara has accepted the request from Thomas Cook to continue on the Board of TCI, which will help the process of consolidation. TCI which will become a wholly owned subsidiary of Thomas Cook India but will continue to operate as a separate legal entity. The combined businesses of Thomas Cook, LKP Forex and TCI will make this Group one of the largest travel and tour operators in India apart from being the largest in Forex. With its 68 branches in Thomas Cook, it will add 88 branches of LKP Forex, once the merger of the companies (currently pending with the Bombay High Court) is completed. TCI's branches add up to 27. The total platform will have almost 200 branches and outlets, making it the largest organization in terms of distribution capability. TCI also has 11 offices abroad and these will now serve the Group as selling and distribution offices for the Group, Mr. Bose said. HSBC were the Advisor to Thomas Cook India and TCI was advised by Citigroup.
About Thomas Cook (India) Ltd.:
Thomas Cook India which is celebrating its 125 years of operations in India has embarked on a major growth phase and has plans to grow all its business segments in India by using both organic and inorganic growth drivers. Earlier this year Thomas Cook announced its proposed merger with LKP Forex, which when completed will establish itself as a strong No.1 in the foreign exchange segment. Thomas Cook India offers a broad spectrum of leisure travel-related services such as package tours, currency exchange and travel insurance as well as hotel and flight reservations. Thomas Cook has been present in India for 125 years and operates a total of 68 offices at various locations in the country and has operations in Sri Lanka & Mauritius. It employs around 1,200 staff and generated revenue of Rs. 142.1 crores (US$ 31.5 million) in the 2004/05 financial year. The company was acquired by Dubai Financial LLC at the beginning of the year.
Travel Corporation (I) Pvt. Limited is one of India's premier travel and tour organization offering national and international travel and tour services. It operates 27 offices at major tourist destination and cities in India and 11 offices in USA, Canada, Europe, UK, Korea, Japan, China and Australia and is one of India's largest tour operators. It employs around 1,000 staff and reported an income of Rs. 40 crore (US$ 8.6 million) in the 2005/06.
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