Thomas Cook in £750m advanced talks with Chinese firms

Thomas Cook has said they are in “advanced discussions” with Chinese firm Fosun who are the company’s largest shareholder.

Cook’s core lenders are considering how the parties could “make a substantial new capital investment as part of a proposed recapitalisation and separation.”

The proposal would see Fosun owning a significant controlling stake in Thomas Cook with a minority interest in the airline group.

The travel tour operator firm are looking for £750m in cash from lending banks and Fosun.

A Fosun spokesman said, “Fosun is a shareholder in Thomas Cook, because it is a British company operating in the global travel industry, in which we have extensive experience.

“We are committed investors, with a proven track record of turning around iconic brands including ClubMed and Wolverhampton Wanderers FC.”

Peter Fankhauser, chief executive of Thomas Cook said, “After evaluating a broad range of options to reduce our debt and to put our finances onto a more sustainable footing, the board has decided to move forward with a plan to recapitalise the business, supported by a substantial injection of new money from our long-standing shareholder, Fosun, and our core lending banks.

“While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees.”