Thomas Cook sells 77% stake in India unit to Fairbridge

Canada's Fairfax Financial Holdings will buy Thomas Cook Group Plc's 77% stake in its India operations for about USD 150 million, as the UK holiday firm continues to pare down its debt.

Property and casualty insurer Fairfax's unit Fairbridge Capital will pay Rs 50 per share of Thomas Cook (India) Ltd for a total of Rs 817.4 crore. The offer represents an 18% discount to Thomas Cook India's closing price of Rs 61.05 on Monday on the National Stock Exchange. In February, Thomas Cook confirmed that it was seeking a buyer for its stake in its Indian unit in an effort to reduce its 890 million pounds debt. Fairfax's CEO Prem Watsa, a value investor whose approach and acumen is sometimes compared to Warren Buffett's, said Madhavan Menon will continue as Thomas Cook India's CEO. Watsa, an Indian-born Canadian investor who took control of Fairfax in 1985, also sits on the board of Research in Motion and holds a 19% interest in pulp and paper company Abitibibowater. Also watch a CNBC-TV18 report on the Thomas Cook stake sale.