Kuoni Group sells Indian travel activities and tour operator in Hong Kong to Canadian group Fairfax

Kuoni Group has signed an agreement with Fairfax Financial Holdings Ltd through its travel provider Thomas Cook India to sell Kuoni's Indian travel activities and the tour operator Kuoni Hong Kong. The Indian travel activities encompass outbound tour operating, business travel, travel agencies, and inbound business (Destination Management India). The purchase price is CHF 79 million. Subject to approval from the competent authorities, the transaction is expected to complete in the course of 2015.

Fairfax/Thomas Cook India are taking on all of the approximately 1’800 employees (FTE) at the existing locations in India and Hong Kong and will continue to run the business activities. In 2014 the sold businesses generated a turnover of CHF 284 million and operating earnings before amortisation (EBITA) of CHF 4.5 million. Thomas Cook India has over 232 locations in 94 cities in India, Mauritius and Sri Lanka and is a leading provider of foreign exchange services, business and leisure travel. Thomas Cook India is a listed company at the National Stock Exchange of India and is majority-owned by Canadian group Fairfax Financial Holdings Ltd, which is listed on Toronto Stock Exchange.

The Kuoni brand is licensed to the acquirer for one year in India and for five years in Hong Kong. All other brands such as SOTC, Sita and Distant Frontiers are transferred with the business.

"With the sale of the tour operating activities in India and Hong Kong, we have completed the sale of the outbound business as announced in January. I’m very pleased that we found forward-looking solutions for all the units. The inclusion of the Indian Destination Management Specialists in the deal provided Kuoni Group an opportunity to conclude a timely transaction at attractive terms. We expect the closing of all transactions in the course of 2015, allowing Kuoni to focus on the further development of its core business", said Peter Meier, CEO of Kuoni Group.

At completion of the transaction, the sale of these Asian tour operating activities and Destination Management India will have a slightly positive effect on the net result from discontinued operations. When the transaction is completed, the over the years accumulated currency translation losses (CTA) will also be recorded under "results from discontinued operations". This one-off special accounting effect to the deconsolidation does not impact the equity or cash position. As at end-June 2015, the accumulated currency translation losses come to CHF 49 million.

sourced:traveldailynews.asia