RNS Number : 4880A Thomas Cook Group PLC 20 March 2013
20 March 2013
Thomas Cook Group plc
Thomas Cook announces sale of North American business
Thomas Cook Group plc announces today that it has agreed to sell Thomas Cook Canada Inc. and Thomas Cook USA Holdings, Inc., together known as Thomas Cook North America ("TCNA"), to Red Label Vacations Inc. (which trades as Redtag.ca "Red Tag"). The transaction is for cash consideration of $5.3 million Canadian dollars (£3.4 million at current exchange rates).
TCNA operates a tour operator and distribution network in Canada. TCNA also owns ABC Corporate Services Inc. and D-FW Travel Arrangements Inc. in the United States.
Completion of the transaction is subject to a number of conditions, including clearance by the Competition Bureau of Canada, the release of guarantees provided by Thomas Cook Group plc to third parties on behalf of TCNA and the release of guarantees provided by TCNA in support of the Group's financing arrangements. The transaction is expected to complete by 31 May 2013. Proceeds will be used to reduce the borrowings of the Thomas Cook Group. |