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Thomas Cook in £750m advanced talks with Chinese firms

by LLB Reporter
12th Jul 19 8:35 am

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.”

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