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Thomas Cook India to acquire Travel Corpn.

Staff Correspondent

To consolidate inbound travel trade business

— Photo: Shashi Ashiwal

TO TRAVEL TOGETHER: Udayan Bose (left), Chairman, Thomas Cook India, and Jehangir Katgara, Director, TCI, at a press conference in Mumbai on Friday.

MUMBAI: Thomas Cook (India) Ltd. (TCIL) will acquire the entire shareholding of Travel Corporation (India) Pvt. Ltd. (TCI) in an all cash deal for a consideration of Rs. 182.45 crore. Post-acquisition, TCI will become a wholly owned subsidiary of Thomas Cook India.

However, TCI will continue to operate as a separate legal entity.

Earlier this year, Dubai Financial LLC had acquired Thomas Cook (India) Ltd. by buying 68 per cent of its equity. It offers a broad spectrum of leisure travel-related services such as package tours, currency exchange and travel insurance as well as hotel and flight reservations.

Also, earlier this year, Thomas Cook had announced its proposed merger with LKP Forex, which, when completed, will establish the entity as a leader in the foreign exchange market.

Addressing the media here on Friday, Udayan Bose, Chairman, Thomas Cook India, said, "the combination of Thomas Cook India and TCI will bring together two successful and customer focused companies, committed to providing travellers across India with the best travel products and services.''

TCI employs around 1,000 people and reported an income of Rs. 40 crore in 2005-06. Its profit before tax was Rs. 9 crore and this is expected to go up to Rs. 13-14 crore in the current year. While inbound travel as well as travel and ticketing accounted for 48 per cent each of the company's business, outbound travel accounted for four per cent.

Buys TTK visa services

In a separate transaction, Thomas Cook has announced that it is acquiring 76 per cent in the visa services business of TTK Enterprises.

According to Mr. Bose, "TTK is hiving off the forex and travel business of the company and we are buying 76 per cent in the visa services which has been valued at Rs. 22.50 crore. Our acquisition cost will be Rs. 16.90 crore.''

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