A strange acquisition in my opinion

[Dorsia1]

http://www.marketwatch.com/story/fairfax-announces-agreement-to-acquire-thomas-cook-india-2012-05-21-171735848

[NormR]

Probably not my first choice either but it seems small and the value might be good.  (It's not clear from the article.)

[Dorsia1]

Anything in the travel industry seems to me to have zero moat and a low barrier to entry.

[indirect]

It is a known brand in india. Cash flow from Thomas Cook (India) + intangible brand must be 50c dollar.

[Parsad]

Indian middle class is the fastest growing in the world.  Travel will be a natural growth area and TC India is I believe the largest agency in India.  I bet you'll see Fairfax (or Fairbridge) continue to make significant Indian consumer-related acquisitions.  Cheers!

[Christopher1]

A bit outdated but interesting interview with Thomas Cook India Managing Director Madhavan Menon:

 

http://www.livemint.com/2008/04/26000228/Madhavan-Menon--A-man-for-cha.html

 

An interesting highlight about his character:

“Well, I like the work. If you ask my wife, she will tell you that I am also married to Thomas Cook India,” he chuckles. “But, I do take a two-week vacation every year.”

[value-is-what-you-get]

When Fairfax got into the insurance business in India, it was mentioned that insurance is really not that prevalent and so there is room for a lot of natural growth.  It seems to me that greasing the wheels with travel insurance and insuramce against loss of funds while travelling etc. is a great way to further ingrain the concept with the more affluent travelling market.

[berkshiremystery]

Thomas Cook completes sale of Indian operations to Prem Watsa's Fairbridge Capital news

14 August 2012

 

http://www.domain-b.com/industry/Tourism/20120814_thomas_cook.html

 

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Fairbridge Capital (Mauritius) Limited

http://www.fairbridgecapital.com

http://www.fairbridgecapital.com/aboutus.html

 

 

 

 

 

[Parsad]

Thomas Cook completes sale of Indian operations to Prem Watsa's Fairbridge Capital news

14 August 2012

 

http://www.domain-b.com/industry/Tourism/20120814_thomas_cook.html

 

-----

 

Fairbridge Capital (Mauritius) Limited

http://www.fairbridgecapital.com

http://www.fairbridgecapital.com/aboutus.html

 

This is a long-term, expansive bet on India.  We'll see alot more stuff being acquired by Fairbridge in the future.  Cheers!

[mpauls]

I didn't look into the transaction so I don't know what was paid, but I'm familiar (or used to be) with this company and it's actually not a bad "bet" assuming a reasonable price, which given Prem is likely.

[berkshiremystery]

I didn't look into the transaction so I don't know what was paid, but I'm familiar (or used to be) with this company and it's actually not a bad "bet" assuming a reasonable price, which given Prem is likely.

 

 

Here I found by accident the details of Thomas Cook offer.

Cheers!

 

 

http://www.thomascook.in/tcportal/downloads/TCILLetterOpenOffer.pdf

 

[Grenville]

Nice little acquisition. Probably too early to say, but it looks like a nice holding company strategy of buying good businesses and letting them run independently in India's growth markets.

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Thomas Cook India Acquires 74% Stake In Ikya Human Capital Solutions

http://www.rttnews.com/2051165/thomas-cook-india-acquires-74-stake-in-ikya-human-capital-solutions.aspx?type=in&utm_source=google&utm_campaign=sitemap

 

"Thomas Cook (India) Ltd. has signed an investment agreement to acquire a 74 percent interest in Ikya Human Capital Solutions Pvt. Ltd.,a human resources staffing solutions company in India, for consideration of Rs.256 crore ($.47 million)."

 

"Managing Director Madhavan Menon said, "As one of the largest integrated travel services companies in the country, it is our strategy to invest in partnerships that broaden our business services platform to increase shareholder value. Ikya's wide range of HR services and sterling reputation, offer us a wonderful opportunity to extend the bouquet of travel, financial and HR services we offer to corporates across India."

 

He added, "Post the acquisition, Ikya would remain a stand-alone independently managed entity supervised by Thomas Cook (India), with the assistance of Fairbridge, and we are confident that their management team headed by Ajit Isaac will continue to grow its business for the benefit of all stakeholders. We will continue to focus and invest in the growth of our traditional travel-related businesses."