MUMBAI: Tata Capital said it has signed a definitive agreement to sell Tata Capital Forex Limited (foreign exchange) and TC Travel and Services Limited (travel services) to Thomas CookBSE 1.67 % (India) Ltd.
It added that these companies will continue to run under the Tata Capital management, in consultation with Thomas Cook on specific matters, till the closing date when the share sale will be consummated.
“Travel and Forex services are growing sectors in the Indian economy. We are confident that Thomas Cook, with its large scale and network, will build these businesses further and help them reach their potential," Praveen Kadle, Managing Director & CEO, Tata Capital.
Tata Group is selling non-core companies to make the loosely-held conglomerate leaner. The focus now is strengthen balance sheets, reduce debt and develop scale under the new leadership of Chairman N. Chandrasekaran.
“Our acquisition of Tata Capital’s Forex and Travel companies serves to further strengthen the Thomas Cook IndiaBSE 1.67 % Group’s leadership position in the Travel & Foreign Exchange sector in the country. The acquisition creates clear opportunities, including a significant increase in scale and network reach, volume/ buying advantages as well as technology gains, all resulting in stronger customer service and stakeholder value," Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Limited.
Source: economictimes.indiatimes.com