Thomas Cook in talks to buy TCI

MUMBAI: Thomas Cook India is in an advanced state of negotiations to buy out the promoters of inbound travel company Travel Corporation India (TCI). Due diligence is now being carried out for the deal, which is expected to be an all-stock deal estimated to be worth about Rs 140 crore. Citibank and HSBC are said to be advising the company on the transaction.

On the legal side, while Crawford Bailey is advising TCI, ML Bhakta and Co are advising Thomas Cook, industry sources said.

Travel and forex major Thomas Cook was close to acquiring TCI about six years ago, but the deal fell through. Thomas Cook India has since been taken over by the Dubai Investment Group and says it is looking at expansion through acquisitions in the country over the next few months.

When contacted by ET, a Thomas Cook spokesperson declined comment. TCI is a family-owned company, with an equal shareholding by the Katgara, Parikh and Kotak families. It is, however, managed by the Katgara family with MD Jehangir Katgara in the saddle.
Travel industry sources say there is a synergy between the two companies because Thomas Cook’s inbound business is now largely from charter tourists, being sent by its erstwhile parent in Europe.

TCI is a very strong inbound operator and has high-end individual travellers as its customers. This is expected to complement the Thomas Cook portfolio.

TCI has 25 offices in India and 11 abroad. Besides tours, it also specialises in special interest and incentive tours, conferences, air charters and cruise ship ground operations.

TCI is also emerging as a large outbound operator and is the general sales agent in India for international travel brands like Globus & Cosmos tours, Rail Europe, Greyhound, Amtrak, Rocky Mountaineer Vacations, Japan Rail and Disneyland Paris.