No relation with Thomas Cook Plc, financial position strong, says Thomas Cook India MD clarifying rumour

TCIL has been independent since August 2012 when Thomas Cook Plc sold its entire stake to Fairfax Financial Holdings in Canada

Press Trust of India July 22, 2019 08:13:58 IST
No relation with Thomas Cook Plc, financial position strong, says Thomas Cook India MD clarifying rumour
  • The problems faced by the British firm had affected the share prices of Thomas Cook India Ltd (TCIL)

  • TCIL and Thomas Cook Plc are completely unrelated entities

  • TCIL has been independent since August 2012 when Thomas Cook Plc sold its entire stake to Fairfax Financial Holdings in Canada

New Delhi: Travel services firm Thomas Cook India has no relationship with UK-based Thomas Cook Plc and there are no implications on it from the issues being faced by the British firm, a top company official said.

Earlier on 12 July, Thomas Cook Plc had said it was in advanced discussions with China's Fosun Tourism Group as it targets an infusion of 750 million pounds "which would provide sufficient liquidity to trade over the winter 2019/20 season and the financial flexibility to invest in the business for the future".

The problems faced by the British firm had affected the share prices of Thomas Cook India Ltd (TCIL).

"There is no business relationship between Thomas Cook India and Thomas Cook Plc, and there are no receivables outstanding from them in TCIL's India books," Thomas Cook India's Chairman and MD Madhavan Menon told PTI.

TCIL and Thomas Cook Plc are completely unrelated entities. TCIL has been independent since August 2012 when Thomas Cook Plc sold its entire stake to Fairfax Financial Holdings, its current majority shareholder based in Canada.

No relation with Thomas Cook Plc financial position strong says Thomas Cook India MD clarifying rumour

Reuters image

"Post-this transaction, Thomas Cook Plc ceased to be the promoter of TCIL. TCIL has since this date been a part of the Fairfax Group," he added.

Menon said TCIL maintains a strong financial position. "Cash and bank deposits balance of Thomas Cook India Group (consolidated level) is at Rs 1,058.8 crore as of 31 March 2019," he asserted.

Thomas Cook India Group has witnessed robust performances across all key travel and foreign exchange businesses and continues to remain at a healthy financial position having prepaid its obligations and is debt-free at a holding company level, Menon said.

"Our forward booking position reflects a healthy increase of over 12 percent. We are bullish on both the foreign exchange as well as the inbound and outbound businesses," he added.

Seeking to distance TCIL from Thomas Cook Plc, Menon said, "The only common element is the usage of the brand name 'Thomas Cook' for which TCIL holds an exclusive brand licence covering the regions of India, Sri Lanka and Mauritius."

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