No link with UK co: Thomas Cook India
New Delhi: Thomas Cook India (TCIL) has clarified that it has nothing to do with the UK company since 2012 when it was acquired by Canadabased Fairfax Financial Holdings.
But, TCIL saw its share price take a beating on Monday when the broader market witnessed a 1,000-point (2.8%) gain and it closed 1.8% lower at Rs 153.7.
“TCIL reiterates that it is a completely separate entity from Thomas Cook UK post acquisition in 2012 by Canada based Fairfax Financial Holdings. (What’s happening with) Thomas Cook UK has no correlation, impact on TCIL,” the company said in a statement.
TCIL CMD Madhavan Menon said: “TCIL was acquired by Fairfax Financial Holdings via a 77% stake in 2012 and Thomas Cook UK has had no stake in TCIL since then. Thomas Cook India Group has a strong financial position with cash and bank deposits at Rs 1,389 crore as on June 30, 2019. On a standalone basis, Thomas Cook India is debt-free upon pre-payment of Rs 67 crore debenture obligations ahead of schedule. The group generates an average annual free cash flow of around Rs 250 crore.”
“Post transfer of its entire stake in TCIL to Fairfax, Thomas Cook UK ceased to be promoter of TCIL from the said date and since then, Thomas Cook UK has had no stake in TCIL. The last seven years have been fruitful as we continue to grow and build our legacy as an independent entity after Fairfax Financial acquired a 77% in TCIL in 2012,” Menon said.