Mumbai: UK-based travel group Thomas Cook Group Plc has made an open offer to the public to acquire over 20 per cent equity of Thomas Cook India Ltd for about Rs351 crore.

Last week the UK-based company had announced the acquisition of Thomas Cook India and its middle East opoerations (See: Thomas Cook Group acquires controlling stake in Thomas Cook India, Middle East operations).

Thomas Cook UK has offered to acquire 32,795,996 equity shares, representing around 20.4 per cent of the equity capital of Thomas Cook India Ltd (TCIL), at Rs107 per share, TCIL said in a filing with the Bombay Stock Exchange.

The offer would open on April 22 and close on May 12, the statement added.

Thomas Cook India had last week said the UK parent would acquire up to 74.9 per cent of the Indian arm and would also buy back its Egypt business and brand licences in 15 Middle East countries from Dubai Financial Group (DFG) for a total consideration of up to 249 million euros (over Rs1,555 crore).

TCG plans to fund from its balance sheet. The acquisition is earnings accretive and meets TCG's cost of capital criterion, the firm said in a statement. The deal is expected to close by May 2008.

The Bombay Stock Exchange-listed Thomas Cook India has around 180 outlets in 40 cities. 
 
Thomas Cook India is also the largest foreign exchange operator in the country following the acquisition of LKP Forex in August 2006 through a share swap.

In December 2006, TCIL acquired Travel Corporation of India to strengthen its position.

In 2006, Thomas Cook India had revenues of Rs239 crore (€38.2 million) and an EBITDA of Rs77.4 million (€12.4 million). It expects to have increased the EBITDA to Rs104 crore (€16.7 million) in 2007.

The Indian business is being acquired at a price-to-earnings multiple of between 10.3 and 13.9 times at the lower end of the price range and between 12.8 and 17.2 times at the upper end.

Dubai Financial Group is a subsidiary and the direct investment vehicle of Dubai Investment Group. In January 2006, it acquired Thomas Cook International Markets UK which gave it a controlling interest in Thomas Cook India, Mauritius and Sri Lanka.

In February 2007 KarstadtQuelle, the German retailer who owns Thomas Cook, merged it with British travel company MyTravel to create one of Europe's largest tour operators. Post-merger Thomas Cook was listed on the London Stock Exchange as the Thomas Cook Group.