Thomas Cook to spin off HR firm Quess within a year

Thomas Cook aims to spin off its human resource firm Quess within 12 months in a move to simplify business structure and secure better valuation for its core travel business.

Thomas Cook acquired Ikya (now known as Quess), a staffing solutions and facilities management company, in 2013, and listed it on the stock exchange through an initial public offering (IPO) in 2016. Thomas Cooks owns 49 per cent in the firm.

Thomas Cook’s promoter Fairfax and other ordinary shareholders will get shares in Quess proportionate to their holding in the parent company.

Thomas Cook India group chairman Madhavan Menon said the board will discuss the proposal within the next two weeks, after which the company will initiate the process of securing the necessary approvals.

“I believe the whole process can take anywhere from 6 to 12 months,” Menon said.

In an investor note last week, Axis Capital had said it expected a 10-25 per cent upside in Thomas Cook’s current stock price in the back drop of the spin-off move. Thomas Cook shares closed at ~261.85 on the BSE on Tuesday.

Thomas Cook runs travel, foreign exchange, vacation ownership business (through Sterling Holidays) beside Quess.

“We are seeing a momentum in our travel business in the summer season. The forward bookings are looking good and we will make up for the downturn of last year,” said Vishal Suri, managing director of SOTC, a Thomas Cook group company.

Thomas Cook Chief Executive Officer Mahesh Iyer hoped the GST pains would ease by the first quarter of next fiscal and added that the company was working on solutions to reduce its costs post introduction of the tax. “We have also made a representation to the government to reduce certain rates,” he said.

Thomas Cook’s promoter Fairfax and other ordinary shareholders will get shares in Quess proportionate to their holding in the parent company