Thomas Cook share price: what’s the latest with rescue deal in 'difficulty'?
The owner of Fosun Tourism Group admitted that its takeover of struggling British tour operator Thomas Cook presents a lot of challenges.
Thomas Cook continues to hold talks with China-based Fosun Tourism Group - the British tour operator’s largest shareholder – over a £750 million rescue deal, but the Chinese owner said he is facing ‘much difficulty’ in finalising the deal.
‘Like any merger and acquisition, the acquisition of Thomas Cook involves much difficulty,’ Fosun Tourism Group Chairman and CEO Qian Jiannong said. ‘Various sides have got their own priorities. We are intensively listening and negotiating with various parties.’
Thomas Cook teeters on the brink of collapse
Thomas Cook’s shareholders may be reluctant to accept the rescue deal from Fosun International, but a better alternative is unlikely to materialise.
In May, Citigroup analysts downgraded their target price for Thomas Cook’s stock from 28p to zero pence, declaring that the tour operator was ‘worthless’ in a note to investors.
The £750 million rescue deal values the company’s shares at around 3p per share. As it stands, Thomas Cook’s share price sits at 7p a share as of 15:00 GMT on Tuesday.
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Thomas Cook hopes Asian holidaymakers will save it
The British tour operator Thomas Cook is pinning its future on attracting Asian holidaymakers after Beijing-based conglomerate Fosun International swooped in to save the ailing company with a £750 million rescue deal.
According to a report by the Mail on Sunday, the struggling tour operator unveiled plans to boost growth by focusing on Chinese tourists looking to visit Europe during a presentation to debt holders responsible for approving the Fosun deal.
As part of its deal, Fosun also told bond holders that it plans to increase Thomas Cook’s winter sports and city break offerings, as well as targeting millennials by selling music festival and adventure packages.
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