Buzz People

Thomas Cook to sell majority stake

Troubled travel firm Thomas Cook says it has agreed a rescue deal with investor Fosun Tourism, its banks and a majority of its bondholders.
The UK tour operator said in July it was working to secure new investment from Fosun, a major shareholder.
The new deal would see the Chinese group take control of the business at the expense of other shareholders.
Fosun will put in £450m in return for at least 75% of the tour business and 25% of the group's airline.

Profit warnings

Thomas Cook's lending banks and bondholders will contribute a further £450m for 75% of the airline and up to 25% of the tour operator business,
The plan will result in a significant dilution in existing shareholders' interests, the company said, but that it had decided it was the best way to secure the future of the group for all its stakeholders.
"It means the oldest brand in travel will continue to deliver good-value travel," said Simon Calder, travel editor at the Independent. "A lot of uncertainty that people have, including staff, will be settled by this deal.
"But it begs the question - is Thomas Cook going to be able to differentiate itself sufficiently and be able to deliver exciting experiences and good value?"
Fosun is already Thomas Cook's largest shareholder. It also owns the Club Med holiday business and Wolverhampton Wanderers Football Club.
https://www.bbc.co.uk/news/business-49493876
 
Register Now