LKP Forex to merge with Thomas Cook India
- Board of both companies approves the merger in principle
- Share swap ratio being finalised
Mumbai, Friday June 30, 2006: Thomas Cook (India) Ltd (TCIL), the country's leading travel solutions company with 125 years of impressive track record in India and the LKP Group have entered into a non-binding memorandum of understanding to explore the merger of LKP Forex Limited, the foreign exchange arm of the LKP Group with TCIL through a scheme of amalgamation to be approved by the shareholders of both Companies and the Bombay High Court. The amalgamation will be subject to the approval of regulatory authorities.
Both the companies will appoint N.M. Raiji & Company as valuers to recommend the share swap ratio.
The board of directors of both TCIL and LKP Forex met in Mumbai today and have given their in principle approval for the proposal to amalgamate the two companies.
Mr. Udayan Bose, Chairman Thomas Cook India said "It has been our endeavor to grow in the fields of our expertise. Foreign exchange is clearly an important part of our business and the proposed merger is a part of our growth plans in India, with the aim to maximize shareholder value and strengthen our leadership position".
Commenting on the proposed merger Mr. Madhavan Menon, Managing Director, Thomas Cook India said, "Thomas Cook is the leader in the business and the proposed merger with the already proven and established network of LKP Forex would further enhance the efficiency of operations at TCIL".
Mr. Mahendra Doshi, Chairman, LKP Merchant Financing Ltd. said, "We believe it's a win-win situation for the shareholders of both the companies. The proposed merger of LKP Forex with Thomas Cook would enable the merged entity to further boost the business".
TCIL 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. The proposed merger would substantially enhance TCIL's retail presence across the geography of the country.
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 60 offices at various locations in the country. Moreover, Thomas Cook India has operations in Sri Lanka and Mauritius. The company employs around 1,100 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 85 branches across 55 cities. LKP Forex also has strong Franchisee network of around 250 plus Franchisees across the country. The company has staff strength of around 700 personnel. LKP Forex caters to the forex and insurance requirement of over 200000 passengers every year.
For further information contact:
Ms. Kruti Sharma
Thomas Cook (India) Ltd.