Thomas Cook India approves demerger of resorts business into Sterling Holiday Resorts

Travel services firmThomas Cook (India) Ltd (TCIL) on Friday (March 20) said it has given in-principle approval to demerge its resorts and resort management business into Sterling Holiday Resorts Ltd (SHRL), along with a capital restructuring plan. The proposal is subject to approvals from the NCLT and other regulatory authorities.

The demerger aims to separate the resorts business into Sterling Holiday Resorts, with Thomas Cook (India) shareholders receiving 0.81 shares of Sterling Holiday Resorts for every share held in Thomas Cook (India).

Post the demerger, Thomas Cook (India) will continue to hold its existing stake in SHRL, while the promoter and public shareholding pattern of both entities will remain similar. Sterling Holiday Resorts shares are proposed to be listed on the BSE and NSE.
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As part of the restructuring, Thomas Cook (India) will consolidate four shares of face value ₹1 each into one share of ₹4 and subsequently reduce the face value from ₹4 to ₹3 per share. The company will also merge three dormant and non-operating subsidiaries to reduce administrative costs.

Thomas Cook (India) currently owns and/or operates six resorts under the Nature Trails brand across India, catering to segments including adventure holidays, educational trips and corporate getaways.

This business will be transferred to SHRL under the scheme. The restructuring is aimed at separating business segments, streamlining the capital structure and enabling focused growth strategies across verticals.

Mahesh Iyer, Managing Director & CEO of Thomas Cook India Ltd, said, “I am delighted to announce this demerger of Thomas Cook’s Resorts and Resort Management business into Sterling Holiday Resorts Limited.

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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 and restructuring also pave the way for a future listing of SHRL, enabling it to chart its own course in the rapidly expanding hospitality space in India.”

Shares of Thomas Cook (India) Ltd ended at ₹103.80, up by ₹5.10, or 5.17%, on the BSE.