Shares of Thomas Cook India Ltd. rose as much as 2.7% after Fairbridge Capital (Mauritius) said it will buy 77% of Thomas Cook Group’s stake in its India operations for Rs. 8.17bn. At 11:43 am (IST), the stock was trading at Rs. 62.60, up Rs. 1.40 or 2.3% over the previous close.
It earlier touched a day's high of Rs. 62.85 and a day's low ofRs. 53 after opening at Rs. 56.40. Fairbridge is a subsidiary of Fairfax Financial Holdings. The agreement with Fairbridge was reached following an auction process.
Thomas Cook India said that the agreed price is equivalent to Rs. 50 per share, which represents an 11 per cent premium to the market price immediately prior to announcement of the auction process. Thomas Cook Group will grant Fairbridge licence over the Thomas Cook brand for 12.5 years in the countries in which Thomas Cook India operates.
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