Read about Fairbridge Capital’s successful Offer for Sale (OFS) of 40 Mn. equity shares of Thomas Cook (India) Limited (TCIL), and its impact on the Tourism & Hospitality industry post-pandemic. Chairman & CEO of Fairfax Financial Holdings Limited, Mr. Prem Watsa, shares insights on TCIL’s recovery and growth prospects.
In a strategic move that underscores the resilience of the tourism and hospitality industry, Fairbridge Capital (Mauritius) Limited (FCML) has successfully completed an Offer for Sale (OFS) of 40 million equity shares of Thomas Cook (India) Limited (TCIL). Valued at INR 5.58 billion, this transaction marks a significant milestone in the journey of these two industry leaders.
The backdrop for this achievement dates back to March 2021 when FCML injected a substantial capital infusion of USD 60 million into TCIL. This financial support was a response to the unprecedented disruption caused by the global pandemic, which severely impacted the travel and hospitality sector. Fast forward to the present, TCIL’s remarkable recovery is evident in its robust financial performance, setting the stage for the OFS.
The Offer for Sale has not only facilitated the exit of FCML with substantial returns but also reaffirmed their commitment to being the majority shareholder and promoter of the TCIL Group. FCML now holds 300.3 million shares, surpassing its pre-2021 injection stake of 248.2 million shares. This move also increases the floating stock available to minority shareholders, providing them with more opportunities to participate in TCIL’s growth story.
Mr. Prem Watsa, Chairman & CEO of Fairfax Financial Holdings Limited, expressed his thoughts on this development, 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.”
This successful OFS not only strengthens FCML’s position but also reflects the renewed optimism in the tourism and hospitality sector. TCIL’s resurgence, supported by strategic investments, signifies a bright future for the company and underscores the broader industry’s potential for growth in the post-pandemic world.
As the travel and hospitality professionals closely monitor these developments, it becomes clear that the industry is well on its way to recovery and growth, in line with global trends. The future holds promise, and this transaction is a testament to the resilience and adaptability of businesses in the sector.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
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