Carlyle, Everstone join race for Thomas Cook India - report

The bidding is now closed for the sale of the 130-year-old business, with an offer also having been received from UK foreign exchange provider Travelex, and interest expressed by gold non-banking financial company Muthoot Finance and China's HNA Group.

"Private equity firms can sell the business at a later date," P.R. Srinivas, senior director at Deloitte India told Business Standard. "Now we have to see how they will leverage the brand."

Thomas Cook, the second-largest holiday maker in Europe, initiated the process to sell its 77% stake in its India arm late last year. The transaction is intended to bring down the parent company's GBP890 million ($1.4 billion) debt pile.

Thomas Cook has been warned of a possible debt default in the UK, its home market. The company, led by CEO Sam Weihagen, had to ask lenders to come to its rescue twice in five weeks. Thomas Cook's Indian arm, meanwhile, with a turnover of INR3.1 billion ($62 million), is one of the most profitable units within the group. Credit Suisse is assisting in the sale, while Trilegal is the mandated legal adviser.

Previously, Bain Capital and Cox & Kings, one of the world's longest established travel companies, were also reported as being interested in purchasing the asset.

In 2005, Thomas Cook sold its Indian arm to Dubai Investment Group, yet it bought it back in 2008. This would be its second exit, with a decision on the new owner expected in July or August, following a two-stage selection process.

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• Topics
• South Asia
• Consumer
• Buyouts
• buyout
• Consumer
• India
• Everstone Capital
• The Carlyle Group
• TA Associates
• Bravia Capital
• KKR
• Actis Capital
• Bain Capital Asia