Thomas Cook acquires Swiss tourism major Kuoni’s India and Hong Kong businesses

Travel major Thomas Cook India has acquired Swiss tourism major Kuoni's travel business in India and Hong Kong for Rs 535 crore.

"Our acquisition of Kuoni's tour operating and retailing businesses in India and Hong Kong as well as the Indian inbound business reaffirms our belief in the India market potential, as also our strategic intent to explore viable geographies, including the larger Asia opportunity," Prem Watsa, chairman and CEO, Fairfax Financial Holdings that backs Thomas Cook, told ET.

Thomas Cook will pay Rs 320 crore for Kuoni-SOTC (Indian arm) through internal accruals and Rs 215 crore for Kuoni's Hong Kong business through a mix of debt and equity.

"There were parts of Kuoni which would clearly complement and enhance our inbound business and we see strong synergies and benefits accruing from their well established presence/global connection in key source markets like Europe, "Madhavan Menon, MD, Thomas Cook India told ET. Currently, Kuoni-SOTC is present in outbound and inbound tour segment and also runs corporate travel business.

The transaction remains subject to regulatory approvals and is expected to be complete before the end of this year.

"With the sale of the tour operating activities in India and Hong Kong, we have completed the sale of the outbound business as announced in January. I'm very pleased that we found forward-looking solutions for the units in India and Hong Kong," said Peter Meier, CEO, Kuoni Group.

Thomas Cook has been aggressive in the M&A market after Prem Watsa's Fairfax Financial Holdings took control of the firm in 2012 with close to 75% stake, having acquired Ikya Human Solutions (now rebranded as Quess) and Sterling Holiday. Thomas Cook India currently has presence in 95 cities across India, Mauritius and Sri Lanka.

Founded in 1906, Kuoni entered India in 1997 by acquiring SOTC Tours, which was one of the pioneers of foreign tours. Three years later, it took over Sita World Travels, an inbound travel company. Kuoni offers online destination management services and visa services under the VFS brand.


(Image credits: Indiatimes)