|Bid||8.86 x 0|
|Ask||8.99 x 0|
|Day's Range||7.50 - 9.40|
|52 Week Range||4.30 - 86.05|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 16, 2019 - May 16, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||49.49|
Thomas Cook, the UK tour operator, lost nearly a fifth of its market value after it confirmed it was seeking a further £150m on top of the £750m already secured as part of a rescue deal with its debtholders. It added that the shareholders “may be given the opportunity to participate in the recapitalisation on terms to be agreed between, among others, the company, Fosun, and the converting financial creditors”.
(Bloomberg) -- Thomas Cook Group Plc fell the most in a month after the debt-laden travel giant said it needs more than $1 billion for a recapitalization meant to tide it through the winter, when fewer Europeans go on vacation.The U.K. tour operator has made “significant progress” toward finalizing a bailout including an added 150 million pounds ($181 million) from bondholders, it said in a statement Monday. That would be on top of a 750 million-pound package agreed with Cook’s main lending banks and Chinese investor Fosun.The funds “will provide further liquidity headroom through the coming 2019/20 winter cash low period and ensure the business can continue to invest in its strategy,” London-based Thomas Cook said.The 178-year-old holiday firm turned to a debt-for-equity swap as it grapples with a long-term decline in the popularity of package holidays in Europe that has stoked borrowings and shrunk margins. Thomas Cook had almost 2 billion pounds of debt at the end of March.The shares fell as much as 36%, the most since July 12, and were trading 16% lower at 8.1 pence as of 9:54 a.m. in London. The price is down by three-quarters this year, valuing the company at 120 million pounds.Thomas Cook’s 750 million euros ($838 million) of bonds due June 2022 dropped 3 cents on the euro to 24 cents, according to data compiled by Bloomberg.The company reiterated that its refinancing, expected to be in place in early October, will require a reorganization of the ownership of its tour operator and airline businesses as bank and bond debt is converted into equity, significantly diluting current shareholdings.The statement made no mention of Turkish investor and tourism entrepreneur Neset Kockar, who is demanding a role in rescuing Cook after his purchase of a stake led to a temporary surge in the stock.(Updates with bond price in sixth paragraph.)\--With assistance from Luca Casiraghi, Richard Weiss and Irene García Pérez.To contact the reporter on this story: Christopher Jasper in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Anthony Palazzo at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The extra cash will provide further liquidity through the coming 2019-20 winter cash low period, Thomas Cook said. In July, Fosun and Thomas Cook began negotiating a 750 million pound ($903.45 million) rescue that would give the Chinese conglomerate control of the indebted British group's package-tour business. On Monday, Thomas Cook said it had made significant progress towards finalising the key terms of the recapitalisation with Fosun, lending banks and noteholders.
Thomas Cook is in advanced talks with bondholders to raise a further £150m on top of the £750m deal already agreed with Fosun, the Chinese conglomerate, as it seeks to finalise the terms of a rescue deal. The 178-year-old tour operator was on Friday in negotiations to increase the size of the cash being committed to the deal with representatives for Fosun, its lending banks and a group of investors that account for as much as half the value of its outstanding bonds. Thomas Cook declined to comment.
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.
London stocks continued to rally on Friday as the heightened prospect of Federal Reserve rate cuts swept optimism across global markets.
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.
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.
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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.