Fosun may rescue Thomas Cook

BANGKOK, 11 June 2019: China’s Fosun Tourism Group is the latest company to hold talks to buy the ailing Thomas Cook’s tour operating business, Sky News reported at the weekend.

Discussions were described as being at an early stage with no signs yet of a formal bid from Fosun.

However, Fosun Tourism Group, which is already Thomas Cook’s largest shareholder with an 18% stake, informed the London-listed firm of its interest late last week.

A number of companies have been linked to the sale of Thomas Cook’s tourism division, but most of them were keen to grab the group’s airline business.

Fosun would not be eligible to buy the airline business under strict EU aviation rules.

However, the remainder of the so-called world’s oldest travel firm’s business enterprises would be available to the Chinese conglomerate if the sums add up.

According Reuters, Fosun is working with JP Morgan on a potential offer.

Thomas Cook, which serves around 19 million holidaymakers annually, took a big hit on the stock market in recent months leading to speculation about its future.

Its half-year losses stood at UKP1.5 billion and its share value shrank to 10 pence down from UKP1 a year ago

Fosun Tourism Group is described as an investment holding company offering resort services in Europe, the Middle East, Africa, the United States, and the Asia Pacific.

According to Bloomberg, the company’s resorts segment operates vacation resorts under the Club Med and Club Med Joyview brands.