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Travel services provider Thomas Cook India today said it will acquire rival Kuoni group's business in India and Hong Kong for Rs 535 crore.
The company has entered into an agreement with Kuoni group to buy 100 per cent stake in Kuoni Travel (India) Pvt Ltd, Thomas Cook India said in a statement.
It will take all 1,800 employee of Kuoni's Travel business unit and will continue to run the business activities as an "independent entity", it added.
The board of the company in a meeting held today approved buying of Kuoni's Travel business in "one or more tranches, financing the deal through a mix of funds from earlier equity infusion, internal accruals, debt funds (for Hong Kong) and or other permissible modes".
Chairman and CEO of Fairfax Holdings Prem Watsa said: "Acquisition of Kuoni's tour operating and retailing businesses in India & Hong Kong as well as the Indian Inbound business reaffirms our belief in the India market potential, as also our strategic intent to explore viable geographies, including the larger Asia opportunity."
Fairfax Financial Holdings is the controlling share holder of Thomas Cook (India) Ltd.
Kuoni Group CEO Peter Meier said: "With the sale of the tour operating activities in India and Hong Kong, we have completed the sale of the outbound business as announced in January. I'm very pleased that we found forward-looking solutions for the units in India and Hong Kong."
Kuoni India Managing Director Rajeev Wagle said: "While we will continue to operate as two separate companies & brands - a partnership like this - where each partner brings complementary strengths and capabilities to the table, has the potential to create a far more capable, more innovative, more efficient and most importantly - an organisation that can add more value to travelers in the markets we serve."
Thomas Cook India has footprint over 232 locations in 95 cities across India, Mauritius & Sri Lanka.
