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Thomas Cook, Sterling Holiday in Rs 870-cr merger deal

Last Updated 08 February 2014, 17:31 IST

Travel firm Thomas Cook (India) Ltd on Saturday announced a merger with Sterling Holiday Resorts India in a Rs 870-crore part-equity, part-cash deal to be executed in multiple stages.

TCIL will first inject Rs 187 crore for a preferential allotment of 23 per cent stake in Sterling. After that, it will buy stake from shareholders of the Chennai-based resort owner for Rs 176 crore.

This will trigger an open offer under SEBI norms and TCIL will seek to buy up to 26 per cent in Sterling for Rs 230 crore. The equity swap ratio for the merger has been fixed at 120 shares of TCIL for every 100 shares of Sterling. The transaction is expected to be completed by December 2014, after obtaining mandatory clearances.

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(Published 08 February 2014, 17:30 IST)

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