Thomas Cook In­dia ac­quires Kuoni ops in In­dia and Hong Kong

Travel Daily ME - - News -

Thomas Cook In­dia has agreed to ac­quire the Kuoni Group’s out­bound and in­bound travel busi­nesses in In­dia, and its tour op­er­a­tor in Hong Kong.

The deals, which are worth a to­tal of CHF79 mil­lion (US$80.3m), form part of Kuoni's re­cently an­nounced plan to exit from tour op­er­at­ing busi­ness.

The com­pany has al­ready sold its Euro­pean tour op­er­a­tor busi­ness to DER Touris­tik.

Prem Watsa, chair­man & CEO of Fair­fax Fi­nan­cial Hold­ings, which owns Thomas Cook In­dia, com­mented; “Our ac­qui­si­tion of Kuoni’s tour op­er­at­ing and re­tail­ing busi­nesses in In­dia and Hong Kong, as well as the In­dian in­bound busi­ness, reaf­firms our be­lief in the In­dia mar­ket po­ten­tial [and] also our strate­gic in­tent to ex­plore vi­able ge­ogra­phies, in­clud­ing the larger Asia op­por­tu­nity.”

Fol­low­ing the com­ple­tion of the deal, Thomas Cook In­dia will take on all of Kuoni's 1,800 full­time em­ploy­ees in In­dia and Hong Kong, and will con­tinue to run the busi­nesses from their ex­ist­ing lo­ca­tions.

As part of the deal, Thomas Cook In­dia ac­quires the Kuoni brand li­cence for one year in In­dia, and five years in Hong Kong. All other brands, in­clud­ing SOTC, Sita and Dis­tant Fron­tiers, are trans­ferred with the busi­ness.

"With the sale of the tour op­er­at­ing ac­tiv­i­ties in In­dia and Hong Kong, we have com­pleted the sale of the out­bound busi­ness as an­nounced in Jan­uary," said Peter Meier, CEO of the Kuoni Group.

"I’m very pleased that we found for­ward-look­ing so­lu­tions for all the units. The in­clu­sion of the In­dian Des­ti­na­tion Man­age­ment Spe­cial­ists in the deal pro­vided Kuoni Group an op­por­tu­nity to con­clude a timely trans­ac­tion at at­trac­tive terms.

"We ex­pect the clos­ing of all trans­ac­tions in the course of 2015, al­low­ing Kuoni to fo­cus on the fur­ther de­vel­op­ment of its core busi­ness," he added.

In 2014, Kuoni's In­dia and Hong Kong busi­nesses gen­er­ated a turnover of CHF284m and pre-tax prof­its of CHF4.5m.

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