6th Mar 2015 07:24
LONDON (Alliance News) - Thomas Cook Group PLC on Friday said it has struck a strategic deal with Chinese investment group Fosun International Ltd under which the latter will acquire a 5% stake in the travel operator.
Thomas Cook said Fosun will pay GBP91.8 million to acquire 73.1 million shares Thomas Cook will issue to it, giving Fosun a 5% stake in the company. The shares are valued at 125.58 pence, compared to the travel firm's closing price Thursday of 120.60p.
Fosun then intends to acquire further Thomas Cook shares via open market purchases, with plans to increase its shareholding in the company to around 10% of its enlarged share capital.
The deal will give Thomas Cook the opportunity to expand into new markets and collaborate with other Fosun-owned travel businesses, including Club Med.
Over the medium-term, Thomas Cook said the deal will give it access to the fast-growing Chinese tourism market.
"Our partnership with Fosun is aimed at accelerating our profitable growth strategy by allowing us to further develop our differentiated product in our core destination markets, to collaborate with Fosun's other portfolio businesses particularly in France, and to access the world's largest and fastest-growing tourism markets with an experienced local partner," said Peter Fankhauser, Thomas Cook's recently installed chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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