Thomas Cook and Fosun Announce Joint Venture

15 June 2015

Thomas Cook forms JV in China with Fosun

Thomas Cook Group plc ("Thomas Cook") announces today that it has entered into an agreement with Fosun International Limited ("Fosun") to establish a joint venture to develop domestic, inbound and outbound tourism activities for the Chinese market under Thomas Cook brands. The joint venture will be 51% owned by Fosun and 49% by Thomas Cook.

Key highlights include:

· The joint venture will combine Thomas Cook's brand heritage, know-how and expertise in international travel with Fosun's in-depth local market knowledge and operational resources, enabling Thomas Cook to benefit from direct exposure to China's growing demand for leisure travel.

· Reto Wilhelm, currently managing director of Thomas Cook's Eastern and Western European businesses, will take up the position of General Manager. Over his 30-year career in the travel industry, Reto has gained significant experience of the Chinese travel market, including in his previous role as executive board member of the Kuoni Group where he headed Kuoni's Asia and China division.

· Fosun and Thomas Cook will make a combined cash contribution to the joint venture of RMB 15 million (GBP 1.56 million) to support the initial start-up phase, of which Thomas Cook will contribute approximately half. Thomas Cook's contribution will be funded from existing resources. Additional funding will require unanimous approval of the board of the joint venture.

· The board of the joint venture will comprise four members, with Thomas Cook and Fosun appointing two members each.

· Of the executive management team, Thomas Cook will nominate the General Manager and Finance Manager, while Fosun will nominate the Deputy General Manager.

· The joint venture is expected to be operational in the autumn, subject to obtaining the relevant regulatory approvals and licenses, and will be based in the China (Shanghai) Pilot Free Trade Zone.

Peter Fankhauser, Chief Executive Officer of Thomas Cook, said:

"Today marks a significant milestone in our strategic partnership with Fosun. We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner."

Qian Jiannong, President of Fosun's Tourism & Commercial Group, said:

"We are delighted to work with Thomas Cook, the world's best known name in travel, to develop a leading travel business servingthe growing number of Chinese travellers. Today, there is a lack of innovation and differentiation in the travel product offerings for Chinese tourists in China and abroad, presenting an excellent opportunity for our new joint venture to gain a competitive advantage."

Enquiries

About Thomas Cook

Thomas Cook Group plc is one of the world's leading leisure travel groups with sales of £8.5 billion in the year ended 30 September 2014. Thomas Cook is supported by approximately 24,000 employees and operates from 15 source markets; it is number one or two (by revenue) in all its core markets. Thomas Cook Group plc's shares are listed on the London Stock Exchange (TCG).

For more information, please visit www.thomascookgroup.com.

About Fosun

Fosun was founded in 1992 in Shanghai. Fosun International Limited (00656.HK) was listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 16, 2007. Fosun has been consistently investing in China's growth fundamentals, implementing its investment model of "Combining China's Growth Momentum with Global Resources". Fosun is dedicated to making a major stride towards becoming a world-class investment group underpinned by the twin drivers of "insurance-oriented comprehensive financial capability" and "global industrial integration capability taking roots in China". Today, Fosun's businesses include two major segments, integrated finance and industrial operations. 

For more information, please visit www.fosun.com.