Thomas Cook (India) manages and operates six resorts under the Nature Trails brand across serene locations in India
Leading Indian travel firm Thomas Cook (India) (TCIL) has received in-principle approval from its Board of Directors to demerge its resorts and resort management business into Sterling Holiday Resorts (SHRL) and undertake a capital restructuring, subject to National Company Law Tribunal (NCLT) and other regulatory approvals.
In a press statement, TCIL says the objective of the demerger and restructuring is to unlock value for shareholders by creating differentiated investment opportunities for each business segment, streamline the existing capital structure resulting in improved Earnings Per Share and enable sharper strategic and operational focus to pursue sector-specific growth with agility.
According to the statement, under the proposed scheme of arrangement, TCIL shareholders will receive 0.81 SHRL shares for every TCIL share, with TCIL retaining its existing holdings in SHRL and the promoters and public shareholding patterns of both companies remaining unchanged.
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SHRL shares will be listed on BSE and NSE. In addition, TCIL will consolidate four shares of INR 1 each into one share of INR 4 and then reduce the face value to INR 3 per share, while three dormant and non-operating subsidiaries will be merged to lower administrative costs.
Mahesh Iyer
The statement says that the travel firm owns and operates six resorts under the Nature Trails brand across scenic locations in India. These resorts offer curated services for adventure holidays, educational trips and corporate getaways. Under the demerger, this business will be transferred to SHRL.
“I am delighted to announce this demerger of Thomas Cook’s Resorts and Resort Management business into Sterling Holiday Resorts Limited. This demerger and restructuring unlock tremendous value and potential for TCIL shareholders by streamlining the existing capital structure and resulting in improved Earnings Per Share. The demerger and restructuring also paves the way for a future listing of SHRL, enabling it to chart its own course in the rapidly expanding hospitality space in India,” says Mahesh Iyer, Managing Director and CEO, Thomas Cook India.