LONDON (dpa-AFX) - Thomas Cook Group plc (TCG.L, TCKGY.PK) said that, following an auction process, a deal has been reached for the sale of its 77% interest in Thomas Cook (India) Ltd., or TCIL, to Fairbridge Capital (Mauritius) Ltd., a subsidiary of Fairfax Financial Holdings Ltd. The net proceeds of the sale will be used to reduce the net debt of the group.
Under the deal terms, Thomas Cook will get gross cash proceeds of INR 8.17 billion for its shareholding. The agreed price is equivalent to INR 50 per share, which represents a premium of 11% to the market price immediately prior to the announcement of the auction process. The group will grant Fairbridge Capital (Mauritius) a licence over the Thomas Cook brand for 12.5 years in the countries in which TCIL currently operates.
The sale of TCIL is expected to complete within the current financial year.
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© 2012 AFX News
