25 September, Mumbai
Financial services provider Tata Capital on Monday announced that it has signed a definitive agreement to divest its foreign exchange and travel services to Thomas Cook (India).
The company said it signed the agreement to divest 100 per cent of its shareholding in its wholly owned subsidiaries — Tata Capital Forex (foreign exchange) and TC Travel and Services (travel services) — to Thomas Cook (India).
“These companies will continue to run under the Tata Capital management, in consultation with Thomas Cook on specific matters, till the closing date when the share sale will be consummated,” the company said in a statement here.
The network of the two acquired companies currently spans 26 locations and approximately 300 employees, the statement added.
“Travel and forex services are growing sectors in the Indian economy. We are confident that Thomas Cook, with its large scale and network, will build these businesses further and help them reach their potential,” said Praveen Kadle, Managing Director and Chief Executive Officer, Tata Capital.
Thomas Cook (India) is an integrated travel and travel related financial services company.
“Our acquisition of Tata Capital’s Forex and travel companies serves to further strengthen the Thomas Cook India Group’s leadership position in the travel and foreign exchange sector in the country,” said Madhavan Menon, Chairman and Managing Director, Thomas Cook (India).
“The acquisition creates clear opportunities, including a significant increase in scale and network reach, volume/buying advantages as well as technology gains, all resulting in stronger customer service and stakeholder value,” Menon added.