Thomas Cook Group Plc, a UK-based travel company that has recently been in the news as it battles against financial difficulties, has completed the sale of its stake in Hoteles Y Clubs De Vacaciones (HCV).
The company owned a 51 percent stake in HCV, which has been sold to a consortium led by Iberostar Hoteles y Apartamentos SL, for €72.2 million in cash. Iberostar is a Spain-based hotel company, which owns around 100 properties located in 15 countries across Europe, the Caribbean and South America.
The HCV portfolio consists of five hotels and a golf club in Spain, and the operation of an additional Spanish golf club.
The company has stated that ‘The sale is part of a wider disposal programme and underlines our commitment to reduce debt. The transaction has reduced the group’s net debt by €94 million and under the terms of the bank facilities agreement, the proceeds will be retained by the group.’
Earlier, the debt ridden company announced the sale of its 77 percent interest in Thomas Cook (India) Limited (TCIL), its Indian subsidiary, to Fairbridge Capital (Mauritius) Limited, a subsidiary of Fairfax Financial Holdings Limited, for gross proceeds of around £94m. Fairbridge Capital will own the license to use the Thomas Cook brand for 12.5 years in the countries where TCIL currently operates.
The recent sale leaves the company with ownership of only a hotel property in Disneyland Paris, as part of its hotel portfolio. The other assets sold by the company recently include its retail business in The Netherlands.