Thomas Cook (India) Limited has announced a strategic demerger of its Resorts and Resort Management business into Sterling Holiday Resorts Limited. The move, approved in principle by the company’s Board, aims to unlock value for shareholders and streamline Thomas Cook‘s capital structure. The demerger, subject to regulatory approvals, will allow Thomas Cook to focus on its core travel services while enabling Sterling Holiday Resorts to pursue growth in the hospitality sector.
The demerger will see Thomas Cook shareholders receiving shares in Sterling Holiday Resorts, with a share entitlement ratio of 0.81 shares of Sterling for every share of Thomas Cook. Post-demerger, the shareholding pattern of both companies will remain similar, and Sterling Holiday Resorts will be listed on the BSE and NSE.
Additionally, Thomas Cook plans to consolidate its shares, merging four shares of face value ₹1 each into one share of face value ₹4. The company will also reduce the face value of its shares from ₹4 to ₹3 and merge three dormant subsidiaries to cut administrative costs.
Managing Director & CEO of Thomas Cook India, Mahesh Iyer, expressed optimism about the demerger, stating that it would unlock significant value and improve earnings per share for Thomas Cook shareholders. He also highlighted the potential for Sterling Holiday Resorts to expand in India’s hospitality market.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Kinjal and reviewed by Aman Shukla before publication.