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C&N-Thomas Cook deal `not to impact' TCIL operations

Our Bureau

MUMBAI, Dec. 8

THE acquisition of the UK-based Thomas Cook Holdings (TCH) by Germany's Condor & Neckermann Touristic (C&N Touristic) will not have any impact on the business of Thomas Cook (India) Ltd where TCH holds 40 per cent equity.

On the Bombay Stock Exchange (BSE) today, TCIL's scrip gained from Thursday's close of Rs 331.70 to end at Rs 337.55.

``There is no impact at all. It is business as usual for us,'' the official spokesperson for TCIL said.

She pointed out that the ownership of TCH, which holds 40 per cent foreign equity stake in TCIL, had changed hands a couple of times in the recent past.

In 1992, the erstwhile owners Midland Bank sold their equity to Westeutsche Landesbank, which in turn, sold part of the equity later to Preussag AG and Carlson Companies.

The equity ratio consequently was Preussag - 50.1 per cent, Westeutsche Landesbank - 27.9 per cent and Carlson Companies - 22 per cent.

Earlier this year, Preussag acquired the UK's largest travel company, Thomson. It could then no longer hold equity in two companies in the same line of business (Thomas Cook was the UK's third biggest travel company).

When Preussag and Westeutsche Landesbank chose to bow out from TCH, Carlson Companies had the option to buy their stake. But that was not to be the case, a complete sale to C&N Touristic happening instead for 550 million pounds.

Preussag is Germany's biggest travel company and C&N Touristic, its second biggest.

Just over a month ago, TCH decided to sell its Global Financial Services (G&FS) business division to Travelex for 440 million pounds. Travelex is a leading global provider of foreign currency services with the largest network of airport foreign exchange branches in the world. On November 8, in an official statement, TCIL said the sale would not affect the Indian operations.

`` It will result in a better strategic alignment between Thomas Cook's existing Indian business and that of Thomas Cook Holdings,'' Mr Ashwini Kakkar, CEO & MD, TCIL had said then. The impact of G&FS' sale was perceived to be more on the wholesale part of the business, and not on the retail.

Thus, in India, Thomas Cook was to continue offering retail foreign exchange services, travellers' cheques, Visa Travel Money, Moneygram etc, alongside its travel products. If any tie-ups were needed in foreign currency services, Travelex could be approa ched, Mr Kakkar had said.

Asked today, if the foreign currency services would be seen to be in line with the core business of C&N Touristic, the official spokesperson maintained that TCIL's foreign currency services would continue as before.

She said that TCIL intended to expand its business in the SAARC region, it having already commenced operations in Mauritius. On November 7, after a joint press briefing with the International Airline Passenger Association (IAPA), Mr Kakkar had told press persons that TCIL's new operations in Mauritius should fetch at least a million-dollar profit in 2001.

Next on the cards for TCIL is the acquisition of Thomas Cook's Sri Lankan business, so far owned by TCH. ``It is basically an internal adjustment,'' the spokesperson said on the acquisition.

``The Indian subsidiary, Thomas Cook India, is in the process of acquiring the name licence and technical assistance agreement from Thomas Cook Holdings UK, to operate in the SAARC regions of Bangladesh, Nepal, Bhutan, Seychelles, Maldives, Mauritius and Myanmar,'' an official statement said.