Fairbridge Capital reduces stake in Thomas Cook India as company sells 8.5% stake via OFS, ET TravelWorld

Fairbridge Capital (Mauritius), the promoter of Thomas Cook (India) Limited, has successfully concluded an Offer for Sale (OFS) of 40 million equity shares, representing approximately 8.5 per cent of the company’s stake. The transaction, valued at INR 5.58 billion, marks Fairbridge Capital’s move to reduce its stake in Thomas Cook (India) Limited (TCIL) following the company’s recovery from the pandemic-induced disruptions.

In March 2021, Fairbridge Capital (Mauritius) Ltd injected capital of USD 60 million into TCIL to support the company during the challenges posed by the global pandemic. With TCIL’s business now fully recovered, the Offer for Sale has resulted in the return of USD 67.2 million to Fairbridge Capital, showcasing the successful rebound of TCIL’s financial performance.

Fairbridge Capital remains the majority shareholder and promoter of the TCIL Group, holding 300.3 million shares. This is higher than the number of shares it held prior to the funds injected in March 2021 (248.2 million shares), thereby increasing the floating stock available to minority shareholders.

Prem Watsa, Chairman & CEO of Fairfax Financial Holdings, commented on the completion of the Offer for Sale, stating, “Thomas Cook India has been an important member of the Fairfax family since 2012, and we remain committed to maintaining our position as the majority shareholder and promoter of the company. The recovery of the business post the global pandemic is in line with the Tourism & Hospitality industry globally. I am confident that the company will continue to benefit from the India growth story and the rebound of the Tourism & Hospitality industry worldwide.”

In June of the previous year, Fairbridge had increased its stake in Thomas Cook to 72.34 per cent from 70.58 per cent, following the conversion of optionally convertible cumulative redeemable preference shares. The current stake of the lead promoter stands at 68.33 per cent.

As of September 30, Thomas Cook (India) reported a cash and bank balance of INR 1,343 crore and a debt of INR 280 crore. Travel services remain the largest contributor to TCIL’s revenue and profit, with hospitality being the second-largest revenue contributor, while financial services generate more profit than the resort business.

The completion of the Offer for Sale marks a strategic move for Fairbridge Capital and reflects the continued growth trajectory and resilience of Thomas Cook (India) Limited in the evolving landscape of the travel and hospitality industry.