February 9, 2014 2:29:40 am
Travel firm Thomas Cook (India) Ltd (TCIL) on Saturday announced a merger with Sterling Holiday Resorts India in a Rs 870-crore part-equity, part-cash deal to be executed in multiple stages.
TCIL will first inject Rs 187 crore for a preferential allotment of a 23 per cent stake in Sterling. After that, it will buy stake from shareholders of the Chennai-based resort owner for Rs 176 crore.
This will trigger an open offer under the norms formulated by the market regulator Securities and Exchange Board of India. TCIL will seek to buy up to 26 per cent in Sterling for Rs 230 crore.
The equity swap ratio for the merger has been fixed at 120 shares of TCIL for every 100 shares of Sterling. The transaction is expected to be completed by December 2014, after obtaining mandatory clearances. After the merger, Sterling Holiday will continue operations under the leadership of its current MD Ramesh Ramanathan.
Subscriber Only Stories
📣 Join our Telegram channel (The Indian Express) for the latest news and updates
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.