Thomas Cook India: No impact from Thomas Cook UK collapse
The collapse of Thomas Cook has led to confusion and uncertainty in India but the company has made it clear that the Indian entity is totally independent and has had no impact due to the UK development.
In light of media reports on Thomas Cook PLC, the Thomas Cook India Group today reiterated that the India Group has been a completely different entity since August 2012, when it was acquired by Fairfax Financial Holdings (Fairfax), a Canada-based multinational with varied interests across the globe as well as in India.
Post transfer of its entire stake in Thomas Cook (India) Limited to Fairfax, Thomas Cook UK ceased to be the promoter of Thomas Cook (India) Limited from August 2012 and since then, Thomas Cook UK has had no financial or business stake in Thomas Cook (India) Limited.
Mr. Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd. (TCIL), said: “In light of today’s media reports regarding the collapse of Thomas Cook PLC in the UK, it is important that I categorically reiterate that it is business as usual for Thomas Cook India which is a completely independent entity, acquired by Canada based Fairfax Financial Holdings in August 2012 from Thomas Cook in the UK.
“Given there is no connection whatsoever between Thomas Cook in the UK and Thomas Cook India, the collapse of Thomas Cook in the UK has no impact whatsoever in terms of ownership, business, people, technology or processes to us at Thomas Cook India.
“The Thomas Cook India Group’s cash and bank deposits balances stand at Rs. 13,890 Mn. as of June 30, 2019. Thomas Cook India is debt free upon pre-payment of Rs. 670 Mn debenture obligations ahead of schedule. This has been made possible using growing and sustainable cash flows that the Thomas Cook India Group generates year over year. The Group generates an average annual free cash flow of around Rs. 2500 Mn.”