Tata Capital joins race for Thomas Cook India unit

Tata Capital, the financial services arm of the Tata Group, has emerged as a contender to buy Thomas Cook PLC’s Indian unit, a person privy to the company’s plans said on condition of anonymity. Tata Capital is likely to be among bidders shortlisted to buy Thomas Cook India Limited, in which the parent company Thomas Cook PLC owns a 77.1% stake.

A spokesperson for Tata Capital did not immediately respond to queries from ET NOW. A Thomas Cook India spokesperson had earlier declined to comment on the specifics of the deal.

Credit Suisse is advising Thomas Cook on the auction process being conducted for the sale of its Indian unit.

ET NOW had reported on 26th March that private equity funds Carlyle and TA Associates are likely frontrunners for the purchase of Thomas Cook India. The two funds have submitted the highest bids so far, according to another person familiar with the auction process.

UK-based Travelex Group and KKR are also among bidders for the company.

Tata Capital is likely to have expressed interest for the forex business of Thomas Cook India, which contributes to 65% of the company’s revenues.

Tata Capital is keen to expand its forex and travel cards business and has been exploring the inorganic route to build scale.

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.

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.