Announcement of a Strategic Shift

Thomas Cook (India) Limited (TCIL) has declared the separation of its Resorts and Resort Management business into Sterling Holiday Resorts Limited (SHRL). This strategic transition, sanctioned by the board, is anticipated to boost shareholder value and simplify the corporate capital structure.

The demerger, awaiting regulatory approval, positions SHRL to implement independent growth strategies and may lead to its listing on stock exchanges.

According to TCIL’s audit committee, this move aims to attract diverse investor groups and enhance the Earnings Per Share (EPS) for TCIL’s shareholders. For every share held in TCIL, stakeholders will receive 0.81 shares in SHRL, preserving the existing ownership dynamics post-demerger.

The plan also involves consolidating TCIL shares and merging three inactive subsidiaries to minimize administrative expenses. Additionally, SHRL shares will be traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Mahesh Iyer, the Managing Director and CEO of TCIL, shared his excitement regarding the demerger, stating: “This demerger and restructuring unlock tremendous value and potential for TCIL shareholders by streamlining the existing capital structure and resulting in improved Earnings Per Share.”

The demerger aims to sharpen strategic focus and enhance operational flexibility, allowing SHRL to expand within India’s flourishing hospitality industry.