New Delhi: Thomas Cook Friday said it will seek shareholders' approval to sell 77 percent in its India operations to Fairbridge Capital (Mauritius) Limited.
"The Group is pleased to announce that a circular will be posted to ordinary shareholders Friday with further details of the Thomas Cook India Limited (TCIL) disposal and to convene a general meeting of ordinary shareholders to consider and to approve the TCIL disposal.
"...Together with a temporary dispensation to the Group's limit on borrowing powers under the Articles of Association," the UK-based company said in a statement.
The general meeting will take place on August 9, it added.
These measures, the company said, are a part of the group's action plan aimed at reducing debt and improving the "resilience" of its financing and capital structure.
"The TCIL disposal is expected to raise 86.6 million pounds, the net proceeds of which will be used to reduce the Group's net debt," it said.
In May, Fairfax Financial Holdings Limited had announced that, through its Fairbridge Capital subsidiary, it entered into a pact with Thomas Cook Group plc to purchase its 77 percent interest in TCIL at a purchase price of Rs 50 per share for a total cost of Rs 817.4 crore.
First Published: Friday, July 20, 2012, 22:32