|Bid||5.60 x 0|
|Ask||5.82 x 0|
|Day's Range||4.95 - 6.00|
|52 Week Range||4.30 - 103.80|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||49.49|
Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of the British tourism group Thomas Cook Group plc (Thomas Cook or the company) to Ca from Caa2 and its probability of default rating (PDR) to Ca-PD from Caa2-PD. Moody's has also downgraded to Ca from Caa2 the rating on Thomas Cook's EUR 750 million senior unsecured notes due 2022 and downgraded to Ca from Caa2 its EUR 400 million senior unsecured notes due 2023 issued under Thomas Cook Finance 2 plc. The outlook remains negative. The rating action reflects the announcement that the company is in advanced discussions with Fosun Tourism Group and its affiliates (part of Fosun International Limited -- Ba2, stable) and Thomas Cook's core lending banks to respectively inject new funding of GBP750 million and exchange a significant amount of the company's existing debt into equity.
Shareholders in Thomas Cook are enduring a bout of travel sickness. from China’s Fosun promises to save the world’s oldest holidays company. Shareholders, who have seen the stock nearly halve in value, would be largely wiped out.
London stocks continued to rally on Friday as the heightened prospect of Federal Reserve rate cuts swept optimism across global markets.
(Bloomberg) -- Thomas Cook Group Plc’s bonds rallied but its shares fell after China’s Fosun Group said it may help fund a 750 million-pound ($940 million) rescue of the ailing British travel firm that would heavily dilute its stock.The deal will give Cook’s biggest investor control of the U.K. company’s tour operations and a minority stake in its airline, the sale of which will be put on hold, while swapping debt for equity and issuing new shares, Fosun Tourism Group said in a statement Friday.The talks are advanced, with the money set to provide liquidity through the traditionally slow winter season, according to London-based Thomas Cook. A takeover of a tour operator with roots dating to 1841 would mirror the Asian insurance-to-drugs conglomerate’s acquisition of Club Med, the French resort chain it bought in 2015 and has boosted by bringing in more Chinese tourists.“This plan will put the company on a totally different financial footing with a massive reduction of debt,” Thomas Cook Chief Executive Officer Peter Fankhauser said on a call. “While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution.”He added that while existing stockholders face having their stakes diluted under the plan, they have an opportunity to reinvest alongside Fosun.Cook’s bonds jumped 18% on the news, gaining as much as 6 cents on the euro to 40 cents. Its shares fell as much as 50%, the most since 2011, to a record low. They were trading down 46% as of 12:35 p.m. in London, taking declines this year to 77% and valuing the company at 109 million pounds.Margins at Thomas Cook have been shrinking amid a sluggish European vacation market as more people holiday at home following last summer’s heatwave. Uncertainty over the economic impact of Brexit has also weighed on demand, with tour operator bookings down 9% this summer and airline sales 3%, leading the company to predict lower second-half operating profit.A deal would require agreement from stakeholders and regulators, Cook said, adding that its main lenders are supportive of a recapitalization. A group of bondholders is in “constructive dialogue” with the company, according to their financial adviser Houlihan Lokey Inc. and law firm Milbank.“Fosun is hoping Thomas Cook’s brand name and global reach will expand its business among wealthy Chinese tourists,” said Andrew Collier, managing director at Orient Capital Research.Fosun already owns about 18% of Thomas Cook, and protecting that stake may also have prompted its owner, Guo Guangchang, to agree to the rescue, said Brock Silvers, managing director at Kaiyuan Capital in Hong Kong. Investment in an unprofitable business in a declining sector is otherwise “puzzling.”The refunding plan means the mooted sale Cook’s airline business has been “paused,” according to the company’s statement, though Fankhauser said it may be resumed. A number of carriers had looked at the assets, though none indicated that they would bid.Sanford C. Bernstein Richard Clarke and Harry Martin said in a note that the recapitalization “effectively admits failure in the process to sell the airline,” leaving an intervention from Fosun “the only option to save the business.”Creditors had been seeking to exit loans on concern that Cook’s declining performance would weaken its ability to repay debt that totaled 1.9 billion pounds as of March 31, according to data compiled by Bloomberg.In May, S&P Global ratings and Fitch Ratings pushed the company’s credit score deeper into junk territory, citing high indebtedness.Thomas Cook, which had revenue of 7.4 billion pounds last year, said in June it was in talks with Fosun about a possible transaction.A deal would reflect the renewed aggression of Fosun’s dealmaking, a spree that comes three years after China started reining in overseas investments by some of the country’s biggest and most indebted business groups.In 2016, Thomas Cook and Fosun set up a travel agency partnership to cater to China’s wealthiest tourists. As the Asian country’s wealth grows, tourist zones around the world have taken steps to draw more of them, especially big-spending luxury travelers.(Updates with suspension of airline unit sale from second paragraph, updates shares.)To contact the reporters on this story: Jinshan Hong in Hong Kong at firstname.lastname@example.org;Richard Weiss in Frankfurt at email@example.com;Luca Casiraghi in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Nagarajan at email@example.com, ;Anthony Palazzo at firstname.lastname@example.org, Christopher Jasper, Tara PatelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thomas Cook is in advanced talks with its largest shareholder Fosun Tourism Group over a $940 million (£750 million) injection that will likely see the company broken up. Under the proposal, Fosun will end up owning a controlling stake in the tour operator and a minority interest in the airline. Existing creditors will then take a […]The post Thomas Cook Plans $940 Million Rescue With Fosun as Breakup Looms appeared first on Skift.
The formula is far from a sure-fire success: large Chinese travel agencies selling foreign trips have already emerged, Thomas Cook’s brand enjoys very little recognition in China and its growth at its joint venture there has been slow. “[Fosun] is a trusted and strategic partner for Club Med, and since 2015 it is a trusted and strategic partner for us,” said Peter Fankhauser, Thomas Cook’s chief executive.
Shares plunged more than 50 per cent after Thomas Cook revealed plans to restructure its business, while bonds rallied as investors began negotiations over a deal to swap debt for new equity to secure the company’s future. Thomas Cook, which began offering one-day rail excursions more than 150 years ago, has suffered as customers shifted from the high street to the internet, threatening its ability to service a £1.6bn debt pile. The plan represents a significant gamble for Fosun, the Chinese group which owns holiday group Club Med and has had a stake in Thomas Cook since 2015.
HONG KONG/LONDON (Reuters) - Thomas Cook is negotiating a 750 million pound ($941 million) rescue that will give Fosun Tourism , its biggest investor, control of the indebted British group's package-tour business, in a blow to other shareholders. The company's shares fell more than 45% to their lowest-ever level on news of the proposal, which would give Club Med owner Fosun a minority stake in Thomas Cook's airline business. "This comes at a cost, with a significant dilution for existing shareholders," Chief Executive Peter Fankhauser said, adding it was a "pragmatic and responsible solution to secure the future of the Thomas Cook business and brand".
For years TUI and Thomas Cook have dominated the European package holiday market with their numerous brands spread across multiple countries, but a fast-growing competitor backed by private equity now has both in its sights. Sunweb Group, which has its main offices in the Rotterdam and Zürich, was bought in February by private equity firm […]The post How Sunweb Is Taking On Europe's Biggest Tour Operators appeared first on Skift.
A look at the shareholders of Thomas Cook Group plc (LON:TCG) can tell us which group is most powerful. Generally...
(Bloomberg Opinion) -- If it’s true that all political lives end in failure, then the same could be said for business. Carsten Spohr became Deutsche Lufthansa AG’s chief executive in 2014, made an impressive start, and had his contract extended to the end of 2023. He may regret signing up for that long.The German airline’s shares tumbled 12 percent on Monday after it issued a second profit warning in as many months. It expects to generate as little as 2 billion euros ($2.2 billion) of operating profit in 2019, up to 25% below what was expected by analysts.The stock is now worth less than four times last year’s earnings, a pretty pitiful multiple, and investors who bought the stock when Spohr took over have lost money. Suddenly, a man feted as one of Germany’s most accomplished corporate leaders looks ordinary.How times have changed. Spohr’s response to a 2015 aircraft crash at the Lufthansa offshoot Germanwings was both sensitive and assured. Later on he faced down industrial action to win concessions from staff on pensions. In 2017, Lufthansa’s profit hit a record high and the stock price soared 150%. Spohr was duly named Manager of the Year by Germany’s influential Manager Magazin.Sustaining all of this was always going to be hard in the notoriously unstable airline business. Fuel costs have risen, rivals have added new capacity and air cargo demand has waned, thanks in part to U.S. President Donald Trump’s trade crusades. (It’s worth reading Bloomberg’s William Wilkes on Lufthansa’s litany of problems.)But Spohr can’t just blame external factors. His company has chased growth to the detriment of profitability and it has spent heavily on new jets and integrating older ones from the insolvent Air Berlin. Gross capital expenditure jumped 8% to 3.8 billion euros ($4.3 billion) last year, leaving precious little spare cash.While Lufthansa is still doing fine on long-haul routes, Spohr’s big idea — a budget subsidiary called Eurowings — has been a disaster. The new unit was meant to challenge Ryanair Holdings Plc and EasyJet Plc in Europe, and to serve long-haul holiday destinations, but it lost more than 230 million euros last year. Instead of breaking even in 2019, as was anticipated, it will now remain in the red.Spohr has hit the brakes on Eurowings’s expansion but the company plans to “vigorously defend” its dominant market position in Germany and Austria. Translated, that sounds worryingly like: “Fare war? Bring it on.”Ryanair is pursuing a similar battle of attrition against weaker rivals such as Norwegian Air Shuttle ASA, with the aim of forcing them out of business. But Ryanair’s costs are much lower than those of Eurowings.Of course, Lufthansa can afford a couple of bleak years. At the end of March it had 12 billion euros of net debt, aircraft lease and pension liabilities — or about 2.4 times Ebitda (a measure of earnings). Norwegian’s leverage is miles higher.But when your corporate strategy is all about acquisition (Thomas Cook Group Plc’s German arm could be next on Spohr’s shopping list) and heavy investment, falling profits are doubly alarming. They suggest cash might be misallocated. “We think the sooner the company focuses on value for shareholders and less chasing or defending market share, the better for the shares. We see no hint of that yet,” RBC’s Damian Brewer complained.At an investor event next week, Spohr has a chance to explain how he plans to fly Lufthansa out of this mess. Once seen as a safe steward of Lufthansa’s capital, he’s starting to look a little reckless.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
An approach from the Chinese group, which already owns an 18% stake in Thomas Cook, offers some respite for the U.K. company, which has been in a battle to show that it retains much equity value. Things have been fraught for the British company after it warned again on profit last month and acknowledged the uncertainties in a separate plan to sell its airline and access new financing. Under European rules, Fosun wouldn’t be able to buy a majority stake in the airline arm, which explains why it’s interested only in the holiday division.
European markets were broadly higher as the U.S.-Mexico deal to avert tariffs fueled optimism around global trade. U.S. President Donald Trump announced Saturday on Twitter that tariffs on Mexico due to come into effect Monday were suspended after the two countries reached an agreement in talks. Mexico will intervene more strongly to prevent migrants from transiting through the country to seek asylum in the U.S.
The world's oldest travel company Thomas Cook edged closer to a break up on Monday after its biggest shareholder, China's Fosun Tourism, made a preliminary approach for the British group's core holiday operations. The 178-year-old company, battered by fading demand for its package holidays, high debt and a hot 2018 summer in Europe which deterred bookings, is also weighing approaches for its airline business and Nordic operations as it seeks to raise cash. Shares in Thomas Cook rose more than 13 percent to give the company a market valuation of around 280 million pounds ($355 million).
Thomas Cook, the world's oldest tour operator, has been facing challenges from dwindling demand for its package holidays and high levels of debt, and is also looking to sell its profitable airline business. Sky News said http://bit.ly/2WsUqfI a formal bid from Fosun Tourism for the tour unit was not guaranteed and discussions were at an early stage. It said Fosun is working with bankers at JP Morgan on the potential offer.
Thomas Cook has confirmed it has been approached by private equity firm Triton Partners over a takeover of its Northern Europe business. Talks between the two sides are at a very early stage but the deal, should it go through, would include Thomas Cook's tour operator and airline in Norway, Sweden, Finland, and Denmark. "The […]The post Imperiled Thomas Cook in Talks to Sell Nordics Division appeared first on Skift.