Thomas Cook India Gets Board Nod For Corporate Restructuring
Travel, foreign exchange, destination management services and portfolio investment businesses part of restructuring.
Thomas Cook (India) Ltd. today said its board has approved corporate restructuring, subject to regulatory approvals, through composite scheme of arrangement and amalgamation, aimed at streamlining its businesses into four key verticals.
The verticals include, travel (outbound, domestic, business travel and MICE), foreign exchange, destination management services and portfolio investments such as Sterling Holiday Resorts, the company said in a release issued in Mumbai.
The restructuring also involves the consolidating of the human resource services business into Quess Corp Ltd.
Pursuant to the composite scheme, Thomas Cook (India) (TCIL) shareholders will receive 1,889 equity shares of Quess of Rs 10 each, for every 10,000 equity shares of Rs 1 each held in TCIL.
In its current structure, TCIL along with its subsidiaries and associate companies such as SOTC, TCI, TC Travel and Sterling Holidays are engaged in various travel and travel related financial services, vacation ownership and resorts.
While Quess Corp is engaged in human resource and business related services such as industrial asset management, integrated facility management, human resource services and technology solutions.
"This proposed restructuring with the realignment of the travel businesses of TCIL and consolidation of the human resource services business into Quess Corp, will simplify the group structure, enabling both to grow independently and consolidate their positions in their segments with far greater clarity of focus," said Madhavan Menon, chairman and managing director, TCIL.
Post this proposed restructuring, TCIL will a travel focused company, while Quess charts its own growth trajectory in the high growth opportunity space of human capital and allied services, the release said.