Thomas Cook okays corp revamp, shareholders to get shares in HR firm Quess

Thomas Cook, which bought 49% in Ikya (now Quess) in 2013, got it listed in 2016, will cease to be its promoter; new Quess shares go to Thomas Cook shareholders

Thomas Cook shareholders will receive shares in human resources firm Quess as a part of corporate restructuring exercise to streamline its business. The board of Thomas Cook approved the scheme of amalgamation and arrangement of its human resources and inbound travel business today.

Thomas Cook acquired  49 per cent in Ikya (now known as Quess) in 2013 and got it listed on the stock exchange in 2016. Pursuant to the restructuring, Thomas Cook shareholders will receive 1,889 equity shares of Quess for every 10,000 equity shares of Thomas Cook.

The restructuring exercise has been done to simplify business structure and secure better valuation for its core travel business. Post restructuring, Thomas Cook will cease to be promoter of Quess and new shares in the firm will be issued to Thomas Cook shareholders proportionate to their shareholding.

Thomas Cook stock gained 1.89 per cent today and its market capitalisation stood at Rs 104.93 billion. Quess stock too was up 1 per cent and its market capitalisation was Rs 154.72 billion.

Similarly the inbound business of the company will now be held in SOTC Travel.

In a statement Thomas Cook chairman Madhavan Menon said, “This proposed  proposed restructuring with the realignment of the travel businesses of Thomas Cook and consolidation of the human resource services business into Quess Corp, will simplify the group structure, enabling both Thomas Cook and Quess to grow independently & consolidate their positions in their segments.” 

Thomas Cook, which is owned by financial services company Fairfax, runs travel, foreign exchange, vacation ownership business (through Sterling Holidays) in addition to Quess.