Carlyle, TA Associates emerge frontrunners for Thomas Cook India unit

Buyout firms Carlyle and TA Associates have emerged as frontrunners for the purchase of Thomas Cook PLC’s Indian unit, two people briefed on the matter said on condition of anonymity. The two firms are likely to have placed bids valuing Thomas Cook India at a discount of 10-15% over the current market price at which the company’s shares trade.

Other bidders who also submitted first round bids for the Indian unit include Apax Partners, Everstone Capital and KKR though most of the strategic investors apart from UK-based Travelex are likely to have withdrawn from the bidding process. Chinese travel and hospitality group HNA and India’s Cox & Kings were also reported to have evaluated a bid for the unit but did not finally submit one. Bids have been received in the range of Rs.40-60/share.

A spokesperson for Thomas Cook India declined comment for this story. Carlyle and TA Associates could not be reached for comment.

The short-listed bidders have been asked to submit better offers for the unit by the second week of April after which the highest bidder is likely to be granted exclusivity for a period of 4-6 weeks to conduct due diligence on the company, one of the people quoted above said.

Credit Suisse is advising Thomas Cook on the sale of its Indian unit.

Thomas Cook PLC owns a 77.1% stake in Thomas Cook India. The parent company, with a debt of around £2 billion, decided to put the profitable Indian unit on the block recently, in an effort to clean its books.

Thomas Cook India provides foreign exchange and travel services in 70 Indian cities across 153 owned locations. The company employs 2,700 people across its Indian offices.