Thomas Cook India Outlines Growth Initiatives
- Declares swap ratio for LKP Forex merger
- Announces the proposed acquisition of Thomas Cook Thailand Ltd.
Mumbai, August 10, 2006: Thomas Cook (India) Ltd (TCIL), the leading travel solutions player in the country has declared the share swap ratio for the LKP Forex merger. The share swap ratio is split into 11:20 (11 shares of TCIL shall be issued against 20 shares of LKP) for equity shares and 38:1 (38 shares of TCIL shall be issued against 1 share of LKP) for preference shares. The merger with LKP will be "on a going concern basis" and the company expects to have court approval by December 2006. The equity shares will have a lock in for 3 years.
TCIL also announced the proposed acquisition of Thomas Cook Thailand Ltd. The company will acquire the Thomas Cook Thailand's inbound business including the right to use the Thomas Cook name license in Thailand for all businesses of financial services, leisure outbound, inbound, travel management and travel insurance for a consideration of Euro 2.5 million and an annual royalty.
Mr Udayan Bose, Chairman, TCIL said, "These acquisitions complement TCIL's ongoing aggressive growth plans both by the organic and inorganic route. It also is in consonance with >the investment objectives of Dubai Financial LLC and Dubai Investment Group".
"Acquisitions of this nature help us implement our growth strategy for the Thomas Cook brand," he added. With the merger of LKP Forex, Thomas Cook India will spread its national footprint to 159 locations in 54 cities with combined turnover of Rs.13,000 crore and manpower count of 2000. Thailand will be an addition to TCIL's overseas operations of Thomas Cook Mauritius (a 100% subsidiary of TCIL) and Sri Lanka.
The company's board had given its in principle approval at its board meeting on June 30, 2006 and had appointed N M Raiji & Company as valuers to recommend the share swap ratio. The company has accepted the recommendations of the valuers. The merger is subject to approval of the Bombay High Court and other authorities and is expected to be formalised by end December 2006.
Mr. Madhavan Menon, Managing Director, TCIL said, "These mergers will give a major fillip to our operations. It will help us take the 'Thomas Cook Experience' to more and more people. Additionally it will add to the efficiencies of our operations thereby strengthening our bottom line".
Thomas Cook is the leader in the forex business and the merger of two leading players is expected to result in greater synergy, cost efficiency, expanded customer reach and satisfaction.Mr Mahendra Doshi, Chairman, LKP Merchant Financing Ltd. said," the merger is a win-win situation for the shareholders of both the companies and the merger of two established players would further boost the business".
About Thomas Cook India:
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 71 offices at various locations in the country. Moreover, Thomas Cook India has operations in Sri Lanka and Mauritius. The company employs around 1,300 staff and generated revenue of Rs. 1421 million (US$ 31.5 million) in the 2004/05 financial year.
About LKP Forex:
LKP Forex Limited is a subsidiary of LKP Merchant Financing Limited the holding company of LKP Group. After starting its first branch in Chennai in 1992, today it has a large network of branches across the length and breadth of India and boasts of 88 branches across 54 cities. LKP Forex also has strong Franchisee network of around 200 plus Franchisees across the country. The company has staff strength of around 700 personnel.
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