Thomas Cook of the UK,Europes second biggest travel firm by sales,has initiated a process to sell its 77 per cent stake in Thomas Cook India in a bid to bring down its debt of 890 million pounds. Shares in Thomas Cook India rose by 19.91 per cent to Rs 53.90 following the news,valuing the company at around Rs 1,142 crore. The UK firms future has been in question since it asked lenders to come to its rescue twice in five weeks,sending its shares into freefall,after it warned of a possible debt default. Thomas Cook issued three profit warnings last year,culminating in the departure of chief executive Manny Fontenla-Novoa in August. It has been hit hard by tough trading conditions,especially in Britain,where its core customers base of families with young children has been particularly affected by tough economic conditions. It has also been affected by unrest in popular destinations such as Egypt,Morocco and Tunisia. Following a number of unsolicited informal expressions of interest,we have decided to seek formal offers for our stake in Thomas Cook India, Thomas Cook chief executive Sam Weihagen was quoted in a BSE filing. If the offers are attractive then the company will consider selling the stake and use the proceeds to continue to strengthen the groups balance sheet,he added. On the Indian business,Weihagen said: TCIL is a strong business,operating in an attractive market. Both the business and the market are growing and Thomas Cook will only sell its stake if a compelling offer is received. TCIL provides foreign exchange and travel services in 70 Indian cities across 153 owned locations. The company employs 2,700 people in India.
