TCIL business is not affected by the collapse of Thomas Cook in UK. Thomas Cook India’s Chairman and Managing Director Madhavan Menon took to Twitter on September 23, Monday to clarify the same. In the Twitter post, he mentioned that it is completely a separate entity from Thomas Cook UK post-acquisition in 2012 by Canada based Fairfax Financial Holdings via a 77 per cent stake in 2012 and that the developments concerning the UK-based Company have not impacted it. Also, they remain committed to their valued customers, partners and employees. They only share a brand name through a licensing agreement.
After the transfer of its entire stake in Thomas Cook (India) Limited to Fairfax, Thomas Cook UK is ceased to be the promoter of Thomas Cook (India) Limited. Since then, Thomas Cook UK has had no stake in Thomas Cook (India) Limited.
Thomas Cook India has been independent of Thomascook PLC since 2012.Fairfax Financial group controls the major shareholding in Thomas Cook India. Thomascook india is operationally and financially strong. #ThomasCook #ThomasCookcollapse
— mmenon (@madhavanmenon55) September 23, 2019
Thomas Cook PLC (UK) has no relationship with Thomas Cook India as we were acquired by Canada based Fairfax Financial Holdings (Fairfax) in 2012. We are completely independent of Thomas Cook UK & hence the news of their situation does not impact us. https://t.co/8hszrYqI69
— Thomas Cook India (@tcookin) September 23, 2019
Thomas Cook India has strong financials and upholds the highest level of governance standards.
A 178-year-old British tour operator Thomas Cook has collapsed on Sunday night after it reached to the bankruptcy and failed to secure rescue funding, and travel bookings. More than 600,000 global tourists tour was cancelled early Monday.
Thomas Cook India Group’s total financial position stands at Rs 1,389 crore as of June 30, 2019. On an individual entity basis, Thomas Cook India is a debt-free upon pre-payment of Rs 67 crore debenture obligations ahead of the schedule. Reason for a stable financial position is secured and strong cash flow. Thomas Cook India Group is generating year over year.
Annually, the Group generates an average annual free cash flow of around Rs. 250 crore as per TCIL statement.