To conclude stake sale process by mid '12: Thomas Cook

8070 Investors following Thomas Cook. Share this News with them.

0

Like this story, share it with millions of investors on M3

To conclude stake sale process by mid '12: Thomas Cook

Thomas Cook India expects the stake sale process of parent company, Thomas Cook PLC, to be completed by mid 2012.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Thomas Cook See previous management interviews See what other Experts & Brokerages are saying about Thomas Cook Thomas Cook BSE | NSE 31/05/12 Are Mutual Funds betting on Thomas Cook?

Thomas Cook India expects the stake sale process of parent company, Thomas Cook PLC, to be completed by mid 2012. In an exclusive interview to CNBC-TV18, managing director Madhavan Menon said that they have already started looking at the interest generated and the initial bids received.

Europe's second biggest travel firm by sales announced in early February that it planned to sell its 77% stake in Thomas Cook India in a bid to pare down its debt of 890 million pounds.

This announcement has triggered questions of whether the company will opt for an open offer or delisting as per SEBI rules, to which Menon says "it would depend on if the parent company opts for an open offer and the response they get for the same."

Menon goes on to say that the parent company has clearly stated that they want to sell the company as one piece. "From a management perspective, we see a considerable amount of synergies between the travel and the foreign exchange business in India, and therefore would like to see this company remain together," he said.

Thomas Cook yesterday reported a 26% jump in revenue to Rs 87 crore, mainly lead by its travel business which grew by 53%. On the flip side, margins dropped sequentially due to the rupee depreciation which affected their foreign exchange business, but Menon says that they expect it to improve going forward. "We are going into sales season, so our expectation is that margins are likely to go up," he said.

Below is the edited transcript of Menon's interview with CNBC-TV18. Also watch the accompanying video.

Q: Is it clear that the listed entity will be delisted once the buyout or the sale happens?

A: No, it is not clear at this point of time. Obviously, there are two aspects to the fact that we have to come out with an open offer and there are the SEBI regulations which govern delisting at this point of time. It is not clear as yet. It will all depend on the response that we get in the open offer.

Q: Would you be able to share the other developments with us in terms of how soon you expect bids to open and whether the parent company and you have arrived at some kind of benchmark valuation that you are keen to set for the company?

A: The process has just started. We are looking at what interest has been generated in the market. The process is expected to take a couple of months, where we will first of all look at the initial bids that are received and then decide who we want to invite into the process finally. My expectation is that some time in the middle of the year we would have concluded this process.