Jump to content

500413 - Thomas Cook (India) Ltd


JEast

Recommended Posts

Just adding the topic as FFH has become the majority holder.

 

Of note for our savvy Indian investors: as mentioned at the annual meeting FFH currently holds 77% and must reduce their stake to lower than 75%. The divestiture should take place soon if anyone is interested.

 

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=43f5d096-8373-4559-a8b3-f3320ca27149

 

 

Cheers

JEast

Link to comment
Share on other sites

What is the TBV for Tcook and why FFH has to reduce stake below 75%. Thanks

Just adding the topic as FFH has become the majority holder.

 

Of note for our savvy Indian investors: as mentioned at the annual meeting FFH currently holds 77% and must reduce their stake to lower than 75%. The divestiture should take place soon if anyone is interested.

 

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=43f5d096-8373-4559-a8b3-f3320ca27149

 

 

Cheers

JEast

Link to comment
Share on other sites

What is the TBV for Tcook and why FFH has to reduce stake below 75%. Thanks

 

Don't know TBV, but afaik it's Indian law that foreigners can't own more than 75% in a public company in the country.

 

SEBI (equivalent of SEC  in india ) requires listed companies should not be owned

by more than 75% by a single owner.

Link to comment
Share on other sites

Thanks guys..

 

Directly from CEO

 

Q. Are you issuing some new shares or is it all a sale of Fairfax shares?

 

A: It will be an issuance of new shares, which will dilute Fairbridge’s holdings in the company from 87 to 75 percent.

http://www.moneycontrol.com/news/business/ipp-proceeds-to-fund-acquisition-capex-thomas-cook_840884.html

 

What is the TBV for Tcook and why FFH has to reduce stake below 75%. Thanks

 

Don't know TBV, but afaik it's Indian law that foreigners can't own more than 75% in a public company in the country.

 

SEBI (equivalent of SEC  in india ) requires listed companies should not be owned

by more than 75% by a single owner.

Link to comment
Share on other sites

Just adding the topic as FFH has become the majority holder.

 

Of note for our savvy Indian investors: as mentioned at the annual meeting FFH currently holds 77% and must reduce their stake to lower than 75%. The divestiture should take place soon if anyone is interested.

 

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=43f5d096-8373-4559-a8b3-f3320ca27149

 

 

Cheers

JEast

 

Mr Watsa says in the latest annual report that they bought the Company for 10x FCF after adjusting for value of real estate on balance sheet (or something to that effect). Which would lead to two interesting questions:

1. Does Thomas Cook plan on monetizing the real estate any time soon?

2. Does he believe that real estate in India is fairly valued today?

 

Was anything mentioned regarding the above at the AGM?

Link to comment
Share on other sites

Perhaps a really dumb question, but it looks like this trades on the pink sheets too under TCKGY (The ADR worth 2 ordinary shares) and TCKGF. Anyone know the difference..or a better question: what does TCKGF represent?

 

Those might represent the Thomas Cook Group Plc. They sold their ~77% holding in the Indian subsidiary recently which was picked up by Fairbridge Capital.

Link to comment
Share on other sites

My best guess is that they will sell their real estate. They have around 66k in Bombay split between nariman point and bandra which I presume is a lot of money. They will monetize and use it to buy growing business. You can expect same gameplan with fairfax, capital allocations at Hamlin wasta via fairbridge and operations with Indian management.

Link to comment
Share on other sites

  • 11 months later...

Has anyone looked at arbitrage opportunity at Thomas Cook-Sterling Holiday Merger?

 

Thomas cook has indicated there will be open offer to buy Sterling share at 98. But more interestingly if shares are not tendered in the open offer then Sterling shareholder will get 1.2 share of Thomas Cook for each share of Sterling. With Thomas cook trading at 100 and Sterling trading at 96 this looks too good to be true.

 

I have never done arbitrage play and India might have peculiar rules warranting this discrepancy. Any inputs on this? 

 

I am looking to switch from my position of Thomas cook into Sterling and not looking at arbitrage in pure sense as I am not familiar with short selling in India.

Link to comment
Share on other sites

Has anyone looked at arbitrage opportunity at Thomas Cook-Sterling Holiday Merger?

 

Thomas cook has indicated there will be open offer to buy Sterling share at 98. But more interestingly if shares are not tendered in the open offer then Sterling shareholder will get 1.2 share of Thomas Cook for each share of Sterling. With Thomas cook trading at 100 and Sterling trading at 96 this looks too good to be true.

 

I have never done arbitrage play and India might have peculiar rules warranting this discrepancy. Any inputs on this? 

 

I am looking to switch from my position of Thomas cook into Sterling and not looking at arbitrage in pure sense as I am not familiar with short selling in India.

 

Thanks Valueinvesting This seems too good to be true, please let me know if there is any catch here (there is not enough liquidity for sterling), I am also thinking of doing the same. BTW IB is also there in india, Not sure how easy it is to get access via them

Link to comment
Share on other sites

  • 2 months later...

This is my first look at the name.

The arbitrage looks somewhat interesting when first mentioned not now, but the real deal may be the underlying security, Thomas Cook.  Look at the analysis of Bakshi: (https://dl.dropboxusercontent.com/u/28494399/BFBV_2013_14_Files/Lecture_19_Thomas_Cook.pdf.

 

To invest along with Watsa in his Indian investment vehicle, which looks a little bit like Amex 50 years ago.  I'm going to have to really investigate this name.  But at first glance it looks pretty good.  (except that I'm not a non-Resident Indian!).

Link to comment
Share on other sites

I looked at the Kotak link. Seems pretty easy to set up an account. What happens afterward? Is it easy to transfer your funds back to a U.S. account? What about taxes? Do you pay capital gain taxes in India? Complete an Indian tax return? Can you claim a full foreign tax credit in the U.S. if yes? Thanks.

Link to comment
Share on other sites

  • 4 weeks later...
  • 1 month later...
  • 11 months later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...