After news of Thomas Cook being approached for takeover by its largest investor Fosun Tourism, the UK travel company reportedly said last week that the proposed £750 million (US$939 million) bailout, despite diluting shareholder value, is its best option.
The proposed deal is expected to give Fosun control of Thomas Cook’s package tour business, and a minority interest in the group’s airline business, in addition to seeing Fosun extending capital injection and new financing facilities to the ailing UK company.
The proposed £750 million deal could see Fosun, owner of ClubMed, take control of Thomas Cook’s package tour business.
“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,” chief executive Peter Fankhauser told journalists.
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