Thomas Cook to sell India unit to raise funds: report

Mumbai: Cash-strapped UK parent of Thomas Cook India has decided to sell its Indian arm to raise money to help its troubled global operations, the Economic Times reported on Thursday.

Royal Bank of Scotland will find a buyer for Thomas Cook India after the two foreign founders pledged their entire holding in the Indian arm with the British bank on Wednesday, the report said, citing unnamed industry sources.

The company values its Indian business at Rs 700 crore, it said, quoting a person with direct knowledge of the development.

[caption id="attachment_179518" align="alignleft" width="380" caption="According to a report, Thomas Cook India has decided to sell its Indian arm to raise money to help its troubled global operations.Reuters"][/caption]

Mumbai-based Mercury Travels, Cox & Kings, Chinese firm HNA and foreign exchange group Travelex could be interested in the business, the report said.

Thomas Cook India's founders and the UK parent jointly own 77 percent stake in the India unit, while small investors hold about 15.61 percent.

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The talk of selling India business was just speculation and that the company would not like to comment, Thomas Cook India Managing Director Madhavan Menon told the newspaper.

Shares in Thomas Cook India rose more than 2 percent on Thursday after a report said its UK parent has decided to sell the Indian arm to raise money to help the travel firm's troubled global operations.

Royal Bank of Scotland will find a buyer for Thomas Cook India after the two foreign founders pledged their entire holding in the Indian arm with the British bank on Wednesday, the Economic Times said, citing unnamed industry sources.

At 9:16 am shares in Thomas Cook India were up 2.31 percent at Rs 33.15 in BSE Sensex.

Company officials did not answer a phone call by Reuters.

Reuters