Thomas Cook uk acquiring 74.9% stake in Indian arm

Thomas Cook (India) jumped 5% to Rs 88.50 at 14:51 IST on BSE after Thomas Cook Group plc said it is acquiring up to 74.9% stake in Indian arm.

On BSE, 1.64 lakh shares of the scrip were traded with pending buy order of 25940 shares at maximum limit. The stock had an average daily volume of 2.27 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 88.50 and a low of Rs 86.90 so far during the day. The stock had hit a 52-week high of Rs 143.95 on 20 December 2007 and a 52-week low of Rs 48.70 on 14 March 2007.

The scrip had outperformed the market over the past one month till 5 March 2008, gaining 8.99% compared to the Sensex’s fall of 11.37%. It outperformed the market in the past one quarter, rising 12.25% compared to Sensex’s decline of 16.44%.

The small-cap travel agency has an equity capital of Rs 16.08 crore. Face value per share is Re 1.

At the current price of Rs 88.50, the scrip trades at a PE multiple of 52.05, based on Q2 September 2007 annualised EPS of Rs 1.70.

UK.-based travel operator, Thomas Cook plc today said that it is repurchasing 74.90% stake in Thomas Cook India (TCIL) from the Dubai Financial Group LLC and 100% of Thomas Cook branded businesses in Egypt, as well as licences for the Thomas Cook brand in a total of 15 Middle East countries. Thomas Cook had sold its stake in TCIL to Dubai Financial Group in 2006.

Of the proposed acquisition of 74.90% stake, Thomas Cook plc is purchasing 54.90% from Dubai Financial Group LLC (DFG) at Rs 107 per share and will make a further open offer for 20% at the same price.

Thomas Cook (India) offers a broad spectrum of travel-related services that include foreign exchange, corporate travel, leisure travel, and travel insurance.

Thomas Cook (India) reported net profit of Rs 6.82 crore on sales of Rs 52.74 crore in the quarter ended September 2007. The result for the quarter ended September 2007 is not comparable with the previous periods due to the amalgamation of LKP Forex with the company, consolidation of results of Travel Corporation (India), which was acquired on 28 December 2006 and exclusion of results of Hindustan Cargo, which was sold on 30 December 2006.