Thomas Cook India to acquire Kuoni's India, Hong Kong business for Rs 535 cr

Thomas Cook India will acquire rival Kuoni group's business in India and Hong Kong for Rs 535 crore. The travel services provider has entered into an agreement with Kuoni group to buy 100 per cent stake in Kuoni Travel (India) Pvt Ltd.

The board of the company in a meeting held on Friday approved buying of Kuoni's Travel business in "one or more tranches, financing the deal through a mix of funds from earlier equity infusion, internal accruals, debt funds (for Hong Kong) and or other permissible modes".

"Acquisition of Kuoni's tour operating and retailing businesses in India & Hong Kong as well as the Indian Inbound business reaffirms our belief in the India market potential, as also our strategic intent to explore viable geographies, including the larger Asia opportunity," said Prem Watsa, chairman and CEO of Fairfax Holdings, which is the controlling shareholder of Thomas Cook (India).
 
Thomas Cook India has footprint over 232 locations in 95 cities across India, Mauritius & Sri Lanka.

"With the sale of the tour operating activities in India and Hong Kong, we have completed the sale of the outbound business as announced in January. I'm very pleased that we found forward-looking solutions for the units in India and Hong Kong," said Kuoni Group CEO Peter Meier.

Thomas Cook will take all 1,800 employees of Kuoni's Travel business unit and continue to run the business activities as an "independent entity".

Kuoni India Managing Director Rajeev Wagle said: "While we will continue to operate as two separate companies & brands - a partnership like this - where each partner brings complementary strengths and capabilities to the table, has the potential to create a far more capable, more innovative, more efficient and most importantly - an organisation that can add more value to travelers in the markets we serve."