Buyback lifts Thomas Cook

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The scrip gained over 10 per cent in a falling market on Friday after the parent company, Thomas Cook UK, decided to buy back a controlling stake in its Indian arm from Dubai Financial. The stock appreciated by 11 per cent from Rs 80.15 to Rs 88.50 on BSE.

The combined volume on the counter on BSE and NSE surged by 77 per cent with 8.38 lakh equity shares changing hands this week against 4.74 lakh shares traded in the previous week.

The Sensex fell by 9.12 per cent or 1,603.20 points to close the week at 15,975.52 on Friday against 17,578.72 at the beginning of the week.

The Thomas Cook Group announced that it was acquiring up to 74.90 per cent of the issued share capital in Thomas Cook India (TCIL) and 100 per cent of Thomas Cook's branded businesses in Egypt as well as licences for the Thomas Cook brand in 15 West Asian countries.

Thomas Cook is purchasing the businesses from the Dubai Financial Group, subject to the outcome of the open offer.

The parent company, TCIM, held a 54.42 per cent stake, while Dubai Financial owned 7.36 per cent stake in the company at the end of December 2007.