The total consideration of the three deals will aggregate to up to 249 million euros (over Rs 1,500 crore). In January 2006, Thomas Cook Group AG had sold 60 per cent stake in Thomas Cook India to the Dubai firm for nearly $115 million.

Under the terms of the transaction, Thomas Cook has agreed through its UK subsidiary to acquire at least 61.8 per cent and up to 74.9 per cent of TCIL’s share capital. In a private transaction with DFG, Thomas Cook will acquire 54.9 per cent of this for the equivalent of Rs 107 per TCIL share. Under the Sebi rules, Thomas Cook is tendering to acquire up to a further 20 per cent of TCIL shares in an open offer at the same price per share. The cost of acquisition will range from 173 million euro to ¿214 million euro, giving Thomas Cook control of the company.

Thomas Cook will pay a cash consideration equivalent to 35 million euro to DFG for both the Egyptian business and the return of the brand licenses in the 15 West Asian countries. The licensing agreement with DFG for the brand in these 15 countries will be terminated. Consequently, Thomas Cook will now have exclusive ownership of the Thomas Cook brand worldwide.

“The acquisition of TCIL allows Thomas Cook to capitalise on the anticipated strong growth and development of the Indian economy, which we expect to be mirrored by even stronger growth in travel,” said Manny Fontenta-Novoa, Group chief executive Thomas Cook Group plc.

THE COST FACTOR

• UK firm to spend 214 mn euro to buy up to 74.9 per cent in Thomas Cook India

• It will cost 35 mn euro to buy back Egyptian business and the return of the brand licenses in the 15 West Asian

• Dubai Financial Group bought the Thomas Cook stake in Jan 2006 for $115 mn