Fosun Tourism to buy Thomas Cook, related hotel brands for $14.3 mln (updated)

Fosun Tourism

01/11/2019 15:46

(Adds chairman comment, context)
    Nov 1 (Reuters) - China's Fosun Tourism Group said on Friday
it would acquire the Thomas Cook and related hotel brands for 11
million pounds ($14.25 million), in a bid to expand its presence
in the tourism business.
    The assets include trademarks, domain names, software
applications and licences of the British travel firm and related
hotel brands, Hong Kong-listed Fosun said, adding that it did
not plan to buy overseas assets or businesses related to Thomas
Cook for the time being.
    Fosun Tourism Chairman Qian Jiannong said the acquisition
would enable the group to expand its tourism business "building
on the extensive brand awareness of Thomas Cook and the robust
growth momentum of Chinese outbound tourism". 
    Thomas Cook, the world's oldest travel firm, collapsed in
late September succumbing to heavy debt, built up by a series of
ill-fated deals, that hobbled its response to nimble online
rivals.  urn:newsml:reuters.com:*:nL5N26E04T
    Fosun Tourism, which was the largest shareholder of the
former LSE-listed Thomas Cook, had offered to contribute 450
million pounds in August in return for a majority stake in
Thomas Cook's tour operator business and 25% of its airline. 
    This plan, however, fell through after Thomas Cook failed to
secure further funds demanded by its lenders. 
    
($1 = 0.7720 pounds)

 (Reporting by Shreya Mariam Job in Bengaluru; Editing by
Bernard Orr and Subhranshu Sahu)
 ((ShreyaMariam.Job@thomsonreuters.com;))