Business | Tourism
Dubai Financial to sell India and Middle East travel arms
Dubai Financial Group, a Dubai Holding subsidiary, is selling its travel business in India and the Middle East back to Thomas Cook Group after receiving an unsolicited offer from the number two European travel firm.
- By Shakir Husain, Staff Reporter
- Published: 01:09 March 8, 2008
Dubai: Dubai Financial Group, a Dubai Holding subsidiary, is selling its travel business in India and the Middle East back to Thomas Cook Group after receiving an unsolicited offer from the number two European travel firm.
Thomas Cook said on Friday it was spending up to 249 million euros (Dh1.4 billion) on acquiring a controlling stake in Thomas Cook India Limited (TCIL), the second-biggest travel company in India, and Thomas Cook branded businesses in Egypt and licences for the brand in 15 Middle East, including the GCC.
Sayanta Basu, chief executive officer of Dubai Financial Group, told Gulf News the Dubai company had received an unsolicited offer from Thomas Cook.
Dubai Financial did not disclose the value of its deal with Thomas Cook, which plans to buy 54.9 per cent of TCIL in a private deal at Rs107 per share and will tender for up to 20 per cent of additional shares in the open market at the same price.
Thomas Cook sold its entire 60 per cent stake in TCIL in 2006, when the Dubai Holding unit took over the British company TCIM Ltd, the subsidiary of Thomas Cook AG holding the Indian stake.
Dubai Financial said in August 2006 it had obtained the licence to use the Thomas Cook brand in the Middle East and acquired Thomas Cook Overseas Limited (TCO), which represented the group's Egyptian business, and Thomas Cook Leb-anon SAL.
"Dubai Financial Group's investment in Thomas Cook has been very profitable and provided added-value for our shareholders. In the last two years, the company has registered organic and inorganic growth in its home market with earnings doubling," Basu said.
When it sold the India businesses, Thomas Cook had said the deal was part of its strategy to focus on "our core business in Europe." It said on Friday acquiring the business back would allow it to expand into the fast-growing markets of India and the Middle East. Chief executive Manny Fontenla-Novoa said Thomas Cook will also look at acquisitions in Russia and China.
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