UK.-based travel operator, Thomas Cook plc is repurchasing Thomas Cook India ltd (TCIL), which it sold to Dubai Financial two years ago. The Dubai group owns 62% in TCIL and the buyback is being done at Rs 107 per share, said a highly placed sources in the company. The deal is expected to be announced globally later today.
The buyback of the Indian travel major, is a reaffirmation of the growing strength of the Indian market. The TCIL share rose almost 5% to Rs 88.50 on the BSE within five minutes of the market opening.
TCIL has a strong presence in the forex, inbound, outbound and business travel segments. Since the entry of the Dubai group, the company has been growing aggresively through a series of acquisitions, mainly in the travel and foreign exchange space. It bought out LKP Forex to consolidate its lead in the foreign exchange business.
This was followed by the acquisition of Travel Corporation of India (TCI), an established player in the inbound tourism business. In the first nine months last year, TCIL earned consolidated revenue of Rs 225.8 crore (Rs 121.3 crore) and profit after tax of Rs 30.5 crore (Rs 17.3 crore).
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