Thomas Cook consolidates HR services business into Quess Corp

TCIL shareholders will receive 1889 equity shares of Quess (of Rs 10 each) for every 10000 equity shares (of Re 1 each) held in TCIL.

Thomas Cook India Limited (TCIL) has informed the Bombay Stock Exchange that it is undergoing a corporate restructuring. The move is aimed at simplifying and clarifying structure and holdings, streamlining businesses and resources, ensuring focussed management and eliminating cross holdings.

As per this restructuring process, Thomas Cook will consolidate its human resource services business into Quess Corp. Thomas Cook had acquired 74 per cent stake in Quess Corp for Rs 256 crore in May 2013.

TCIL shareholders will receive 1889 equity shares of Quess (of Rs 10 each) for every 10000 equity shares (of Re 1 each) held in TCIL.

In its current structure, TCIL along with its subsidiaries and associate companies,
is engaged in various travel and travel-related financial services, vacation ownership and resorts, while Quess Corp is engaged in human resource and business-related services.

The restructuring will consolidate like businesses into identified entities creating a simpler and more efficient operating structure, with dedicated and focussed business verticals.

In the last few years, both Thomas Cook and Quess Corp have made several acquisitions in their respective areas of operation, leading to the creation of complex structures at
both ends.

Madhavan Menon, chairman & managing director, TCIL says, “This proposed restructuring— with the realignment of the travel businesses of TCIL and consolidation of the human resource services business into Quess Corp—will simplify the Group structure. It will enable both TCIL and Quess to grow independently and consolidate their positions in their segments, with far greater clarity of focus from an industry and growth/opportunity point of view —for investors, management and teams.”

“Post this proposed restructuring, TCIL will become a travel-focussed company, just when the economy and industry are poised for rapid growth, especially from an India/Asia opportunity point of view. Quess, on the other hand, a proven market shaper already, will chart its own growth trajectory in the high-growth opportunity space of human capital and allied services,” he adds.