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Thomas Cook acquires TCI

By BS Reporter in Mumbai
December 02, 2006 12:50 IST
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Thomas Cook India, the country's leading travel and tourism company, has acquired 100 per cent stake in Travel Corporation India for a total consideration of Rs 182.45 crore (Rs 1.82 billion).

This is the second major acquisition announced by TCIL in India this year. The company had acquired LKP Forex earlier this year.

With TCI acquisition, Thomas Cook has become the largest tour operator in the country in terms of distribution capability with almost 200 branches and outlets.

"The TCI acquisition will consolidate our position in the inbound travel segment, in line with our objective to establish Thomas Cook among the largest players in India. The increase in inbound tourism that the country is witnessing now it would help the company to explore fresh opportunities in the sector," said Thomas Cook chairman Udayan Bose.

The company sources said that looking at the growth in the outbound tourism, the company is also planning to acquire 76 per cent in the leading visa services firm TT Enterprises for a consideration of Rs 16.9 crore (Rs 169 million).

Currently, TCI also has 11 offices abroad, which will serve as group selling and distribution offices for TCIL.

TCI has 1000 people working in 27 offices across the country at present located at the US, Canada, the UK and certain other European countries, China, Korea, Japan and Australia catering to 2000 travel agents and tour operators.

Thomas Cook India was taken over by Dubai Financial early year. Following this, it had employed over 1300 staff in 68 branches in the country. TCIL had posted a total turn over of Rs 142 crore (Rs 1.42 billion) in March 2005.

HSBC was the advisor to TCIL and TCI was advised by Citigroup. Thomas Cook shares rose by their maximum daily limit of 10 per cent, closing at Rs 564.05 on the Bombay Stock Exchange on Friday.

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BS Reporter in Mumbai
Source: source