Process for stake sale of the Indian arm has kick started: Thomas Cook

MUMBAI: Thomas Cook India, one of the largest integrated travel company offering foreign exchange and travel packages under one brand said that the process for stake sale of the Indian arm has kick started but it will be still some time before a deal is done as the valuations need to be rioght.

A profit making company, Thomas Cook India, was put up for sale formally in February by its UK based parent group, Thomas Cook plc, which owns 77% in the Indian arm. Credit Suisse is formally appointed to find a buyer and all the shares of the company are consolidated in RBS currently.

"We are at a point where we are at a price discovery stage. The stake sale process is a detailed process and will be conducted in two stages and it is yet to begin," said Madhavan Menon, managing director, Thomas Cook, adding that right now "they do not have a preference for a buyer" it can be a travel firm or it can be buyer form forex business as well."

But Menon was categoric that selling of the company should be in no way seen as a distress sale and all depends on a good price.

The company had earlier denied the stake sale reports and ET had reported in January that the parent company is looking to sell the profitable India business for setting off some part of a huge debt of 900 pounds.

Thomas Cook also said that at no point a piece meal deal was under consideration and the entire business of the company - forex and travel - will be sold as one.

Menon, who has also seen the company's earlier share transaction where the Thomas Cook business (66%) was sold to Dubai Holding said that the Indian business management team is a successful management team and anybody who buys the business will see value in this management. "I will leave this decision (of continuing with the same team in case of a financial investor) to the potential investor," he said.

However the company declines to put a timeline to completion of the stake sale process and said that the parent will not sell this business if they do not see value in the transaction as it is not a distress sale and there is no hurry. The company also refused to discuss possible valuations for the business saying it is too early to discuss.