New Delhi: Thomas Cook (India) Ltd on Monday said it is buying foreign exchange and travel services companies of Tata Capital Ltd.
The company said its board of directors approved signing an agreement with Tata Capital to acquire 100% stake in Tata Capital Forex Ltd and TC Travel and Services Ltd from Tata Capital, the company said in a press release filed with the BSE.
“Our acquisition of Tata Capital’s Forex and travel companies serves to further strengthen the Thomas Cook India Group’s leadership position in the Travel and Foreign Exchange sector in the country,” said Madhavan Menon, chairman and managing director of Thomas Cook.
“The acquisition creates clear opportunities, including a significant increase in scale and network reach, volume/ buying advantages as well as technology gains, all resulting in stronger customer service and stakeholder value,” added Menon.
The deal is subject to regulatory approval.
Thomas Cook will takeover 24 branch network of the two entities. Apart from foreign exchange services, the two companies also provide assistance in the areas of travel loan, insurance and car rental services, according to its website.
Tata Capital Ltd is the financial services arm of the Tata group that manages various private equity funds.
At 12.50pm, shares of Thomas Cook were trading 2.87% down at Rs225.45, while the Sensex fell 348 points, or 1.09%, to 31,574.