Thomas Cook nears package-tour business sell-off, shares crash 59%



by   |  VIEW 406

Thomas Cook nears package-tour business sell-off, shares crash 59%

Thomas Cook, the British travel company headquartered in London, said on Friday, the 12th of July 2019, that the travel company had been in an advanced stage talk to sell-off of its core package-tour business to China’s Fosun Tourism for $941 million (750 million Pound), one of the biggest investors of Thomas Cook, adding a massive blow to other shareholders.

Followed by the reveal of the news, shares of Thomas Cook AG were nosedived about 60 percent to 5.38 pound per share, listed in London Stock Exchange, evaporating billions of market capitalization in a single session, as the debt-laden travel agency had to find a rescue-measure to curb its stockpile of debts.

Followed by Friday’s (July 12th) statement, adding that the act of desperation to sell-off of its most profitable segment was the only way to save the company’s future, Thomas Cook Chief Executive, Peter Fankhauser said, “This comes at a cost, with a significant dilution for existing shareholders.

It was a pragmatic and responsible solution to secure the future of the Thomas Cook business and brand”. In fact, Chinese billionaire Guo Guangcheng’s Fosun International, one of the biggest Chinese conglomerates across the globe, had been spending billions over the recent years on tourism, healthcare and fashion companies in Europe and United States.