Thomas Cook, LKP merger swap at 11:20

Thomas Cook India (TCIL), domestic travel solutions company, has declared the share swap ratio for the proposed merger of LKP Forex "� a subsidiary of LKP Merchant Financing "� with itself.

According to the swap ratio, 11 equity shares of TCIL will be issued for every 20 equity shares of LKP Forex. Similarly, 38 preference shares of TCIL will be issued against 1 preference share of LKP.

The LKP merger will be on 'a going concern basis' and the company expects the court approval by December this year. The equity shares will have a lock-in period of three years.

The valuation report has been prepared by NM Raiji & Co (chartered accountant). The all-share deal will have a cash valuation of Rs 200 crore.

Post-merger, Mahendra Doshi, chairman of LKP Merchant Financing, will join the board of TCIL.

TCIL Chairman Udyan Bose said, "Acquisitions complement TCIL's ongoing aggressive growth plans via both the organic and the inorganic routes. It also is in consonance with the investment objectives of Dubai Financial LLC and Dubai Investment Group."

After the merger on a consolidated basis, TCIL will have 160 branches spread in 55 cities. The company, which employs 2,000 people, has a consolidated turnover of Rs 200 crore. Pre-merger, Thomas Cook has 65 branches earning a revenue of Rs 160 crore.

The board of directors has also principally agreed to purchase the inbound business of Thomas Cook Thailand (TCT) for euro 2.5 million (Rs 14.5 crore). TCT is a leading inbound tour operator of Thailand.

"Mergers and acquisitions of this kind will give a major fillip to our operations. It will add to the efficiencies of our operations, thereby strengthening our bottomline," TCIL Managing Director Madhavan Menon said.