China’s Fosun to buy Thomas Cook’s core holiday business

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China’s Fosun to buy Thomas Cook’s core holiday business

World’s oldest travel company, the Thomas Cook, based on London, was edging closer to a spin off of its assets on Monday, the 10th of June 2019, after one of its biggest stakeholders, China’s Fosun Tourism had made an initial approach for the British travel group’s core holiday business.

The 178-year-old British company, Thomas Cook & Sons., shattered by high debts, faded demands for its holiday packages alongside a hot 2018 European summer that had deterred its bookings last year, had also been contemplating an approach to sell off its airlines business and Nordic operations, as the tourism company had been seeking to raise raw cash.

Followed by the release of Fosun tourism’s move, the shares of Thomas Cook rose more than 13 percent, which had proffered the company a market valuation of around $355 million (280 million pounds). In point of fact, Hong Kong listed China’s Fosun Tourism has already a strong presence in European market with its ownership of Club Med Holiday business.

Aside from that, the Chinese tourism company had been holding an 18 percent in Thomas Cook. The tour operation business of Thomas Cook had about 11 million customers last year, generating 7.4 billion pounds in revenue, while its aviation business had generated about 3.5 billion pounds.