Thomas Cook sells units to Bahrain firm
Manama, October 14, 2013
Thomas Cook Group has sold its Egypt and Lebanon businesses to Bahraini firm Yusuf Bin Ahmed Kanoo for $10.3 million.
According to a statement on the Thomas Cook Investor Site, the transaction will be effected through the sale of Thomas Cook Overseas, a UK company which trades in Egypt through its Thomas Cook Egypt branch and Thomas Cook Lebanon SAL, a Lebanese company, said a report in the Gulf Daily News (GDN), our sister publication.
Thomas Cook Egypt and Thomas Cook Lebanon offer outbound corporate and leisure travel to Egyptian and Lebanese customers, as well as foreign exchange services in Egypt and Lebanon.
The businesses being divested generated an operating profit of $1.4 million in the 11 months which ended on August 31.
Thomas Cook Group expects to incur an exceptional non-cash loss on sale of $31 million, principally due to the write-off of goodwill.
The loss will be provided for in the year ended on September 30.
Thomas Cook Group will continue to offer its customers from other markets travel services to Egypt.
"I am pleased to report further progress on our rapid transformation of Thomas Cook," Thomas Cook Group chief executive Harriet Green said.
"This sale will enable us to focus more of our capital and resources on our core businesses, supporting the delivery of profitable growth."
The transaction does not impact Thomas Cook Group's outbound programme for European customers who wish to travel to Egypt. - TradeArabia News Service