Fosun buys $138 million stake in Thomas Cook

The deal, announced by Fosun via a stock exchange filing in Hong Kong on Friday, will see Thomas Cook 73.1 million new ordinary shares at GBP125.59 apiece. The Chinese group plans on increasing its holding to 10% over time.

Thomas Cook, founded in 1841, claims to serve 23 million travelers per year. It operates from 15 source markets and generated GBP8.5 billion in revenue for the year ended September 2014.

Michael Healy, the company's CFO, said that the new funding will put the company in a better position to negotiate with its creditors. It will also collaborate with Fosun to expand its hotel offering, which currently comprises 220 resorts.

"Thomas Cook's strong brand heritage and its leading position in the European travel market, together with Fosun's extensive expertise and resources, will capitalise on the increasing demand for international leisure travel. The investment in Thomas Cook complements our other recent investments in the sector, providing opportunities for further value creation," said Qunbin Wang, executive director and president of Fosun, in a statement.

These recent investments include Club Méditerranée (Club Med), which was the subject of a widely publicized takeover battle. Last month Fosun successfully concluded the transaction, leading a consortium that paid EUR939 million ($1.1 billion) for a 92.8% stake. Thomas Cook is the largest third-party distributor of Club Med's products in France.

There are some similarities between Fosun's initial investment in Club Med in 2010 and the Thomas Cook transaction, with the Chinese group paying EUR23.38 million ($28.14 million) for a 7.1% stake in the resort operator. However, Fosun's leadership denied that the firm plans a a takeover of Thomas Cook.

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• Topics
• Europe
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• Fosun Group
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