Thomas Cook board gives nod for share buyback

Mumbai: Thomas Cook Thursday said it has received board approval for a buyback of up to 26 million fully paid up shares at a price of Rs 57.50 apiece for a maximum aggregate amount of Rs 150 crore.

The buy-back price is at a premium of 40 per cent over the closing market price on February 25 the statement said.

The buy-back record date has been fixed as March 7, 2020, and the transaction will be entirely funded by internal accruals.


“The perceived negative impact of the coronavirus on travel businesses has affected the company’s share price and hence, the buy-back signals to shareholders the management’s confidence in the strong fundamentals and growth prospects of the company,” the travel company said in a statement.

The process will help the company return cash to its shareholders enhancing the overall return for them. It involves a reservation of up to 15 per cent of the equity shares for small shareholders which would benefit “a significant number” of them.