Thomas Cook (TCIL), India’s leading integrated travel and travel related services company and Chennai-headquartered vacation ownership company Sterling Holiday Resorts (India) have inked Rs 870-crore merger deal. The merger deal will be completed through a multi-stage process. Under the merger terms, for every 100 shares that Thomas Cook holds in Sterling, shareholders of latter will receive 120 shares of former.
The deal has been structured in a manner that Sterling will get Rs 187 crore by way of preferential allotment of 23 per cent stake to TCIL. The company will then buy shares from other shareholders, including Bay Capital and ace investors Rakesh Jhunjhunwala, Radhakrishna Damani, for Rs 176 crore. Since this will trigger an open offer, Rs 230 crore has been earmarked by TCIL for this purpose. Thus, Thomas Cook will make an open offer for buying up to 26% in Sterling for Rs 230 crore. Further, Thomas Cook also has the option to buy an additional 7.22% stake for Rs 63 crore. This transaction is expected to close by the Q4 of 2014, and the open offer price will be announced later. Post-merger, Sterling will be de-listed from the stock exchanges.
Thomas Cook is the largest integrated travel and travel related financial services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa & Passport services and E-Business.
The deal has been structured in a manner that Sterling will get Rs 187 crore by way of preferential allotment of 23 per cent stake to TCIL. The company will then buy shares from other shareholders, including Bay Capital and ace investors Rakesh Jhunjhunwala, Radhakrishna Damani, for Rs 176 crore. Since this will trigger an open offer, Rs 230 crore has been earmarked by TCIL for this purpose. Thus, Thomas Cook will make an open offer for buying up to 26% in Sterling for Rs 230 crore. Further, Thomas Cook also has the option to buy an additional 7.22% stake for Rs 63 crore. This transaction is expected to close by the Q4 of 2014, and the open offer price will be announced later. Post-merger, Sterling will be de-listed from the stock exchanges.
Thomas Cook is the largest integrated travel and travel related financial services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa & Passport services and E-Business.
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