Thomas Cook India to acquire Travel Corporation

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Thomas Cook India to acquire Travel Corporation
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Establishes a clear leadership position in the industry
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Strengthens inbound operations
Consolidates travel trade business in India
Mumbai, Friday December 01, 2006:
Thomas Cook (India) Ltd (TCIL), the country's leading travel solutions company today
announced its decision to acquire Travel Corporation (India) Pvt. Ltd. (TCI). The company
proposes to acquire the entire shareholding of TCI, which post acquisition will be a wholly
owned subsidiary of Thomas Cook India. The acquisition is subject to the approval of the
hareholders of Thomas Cook India. The all cash deal is worth Rs. 182.45 crores.
Mr. Udayan Bose, Chairman Thomas Cook India said "The combination of Thomas
Cook India and TCI would bring together two very successful and customer focused
companies, who are committed to providing travelers across India with very best travel
products and services". He further added "The TCI acquisition will consolidate our position
in the inbound travel segment, which is in line with our objective to establish Thomas Cook
India as among the largest players in India. In view of the increase in inbound tourism that
the country is witnessing, for us to be able to offer two platforms for inbound traffic will be a
big advantage in the market".
Mr. Jehangir Katgara, Director TCI said "Mergers and acquisitions are strengthening
organizations all over the world and India is no exception. In view of the future of the travel
industry, the complementary strengths of both the companies will leave the group well
placed to meet any challenges".
Mr. Katgara has accepted the request from Thomas Cook to continue on the Board of TCI,
which will help the process of consolidation. TCI which will become a wholly owned
subsidiary of Thomas Cook India but will continue to operate as a separate legal entity.
The combined businesses of Thomas Cook, LKP Forex and TCI will make this Group one
of the largest travel and tour operators in India apart from being the largest in Forex. With
its 68 branches in Thomas Cook, it will add 88 branches of LKP Forex, once the merger of
the companies (currently pending with the Bombay High Court) is completed. TCI's
branches add up to 27. The total platform will have almost 200 branches and outlets,
making it the largest organization in terms of distribution capability.
TCI also has 11 offices abroad and these will now serve the Group as selling and
distribution offices for the Group, Mr. Bose said. HSBC were the Advisor to Thomas Cook
India and TCI was advised by Citigroup.
About Thomas Cook (India) Ltd.:
Thomas Cook India which is celebrating its 125 years of operations in India has embarked
on a major growth phase and has plans to grow all its business segments in India by using
both organic and inorganic growth drivers. Earlier this year Thomas Cook announced its
proposed merger with LKP Forex, which when completed will establish itself as a strong
No.1 in the foreign exchange segment.
Thomas Cook India offers a broad spectrum of leisure travel-related services such as
package tours, currency exchange and travel insurance as well as hotel and flight
reservations. Thomas Cook has been present in India for 125 years and operates a total of
68 offices at various locations in the country and has operations in Sri Lanka & Mauritius. It
employs around 1,200 staff and generated revenue of Rs. 142.1 crores (US$ 31.5 million)
in the 2004/05 financial year. The company was acquired by Dubai Financial LLC at the
beginning of the year.
About TCI
Travel Corporation (I) Pvt. Limited is one of India's premier travel and tour organization
offering national and international travel and tour services. It operates 27 offices at major
tourist destination and cities in India and 11 offices in USA, Canada, Europe, UK, Korea,
Japan, China and Australia and is one of India's largest tour operators. It employs around
1,000 staff and reported an income of Rs. 40 crore (US$ 8.6 million) in the 2005/06.
For Media Enquiries please contact: Thomas Cook (India) Limited: Suzanne Pereira
+91-9820297665; suzanne.pereira@in.thomascook.com
Perfect Relations: Ritika Arora +91-9820910855; rarora@perfectrelations.com