Thomas Cook shares up 2% on unit sale report

Shares in Thomas Cook India rose more than 2% on Thursday after a report said its UK parent has decided to sell the Indian arm to raise money to help the travel firm's troubled global operations.

Cash-strapped UK parent of Thomas Cook India has decided to sell its Indian arm to raise money to help its troubled global operations, a business daily reported on Thursday.

Royal Bank of Scotland will find a buyer for Thomas Cook India after the two foreign founders pledged their entire holding in the Indian arm with the British bank on Wednesday, the report said, citing unnamed industry sources.

The company values its Indian business at Rs 700 crore, it said, quoting a person with direct knowledge of the development.

Mumbai-based Mercury Travels, Cox & Kings, Chinese firm HNA and foreign exchange group Travelex could be interested in the business, the report said.

Thomas Cook India's founders and the UK parent jointly own 77% stake in the India unit, while small investors hold about 15.61%.

The talk of selling India business was just speculation and that the company would not like to comment, Thomas Cook India Managing Director Madhavan Menon told the newspaper.

Company officials did not answer a phone call by Reuters.

At 9:16 am shares in Thomas Cook India were up 2.31% at Rs 33.15 in BSE Sensex.