Thomas Cook has reached a deal to sell its stake in a chain of Spanish hotels to Iberostar Hotels and Apartments, reducing its debt by £81 million.
The announcement comes ahead of the delayed preliminary results scheduled for tomorrow where it will reveal its planned restructure which is expected to include redundancies and shop closures (see previous story).
Thomas Cook will receive cash proceeds of 72.2 million euros for HCV, a holding company which together with another shareholder indirectly owns five Spanish hotels and one gold club.
HCV will also be sold with a debt of 22.4 million euros.
The proceeds of the HCV sale to the hotel division of Spanish travel giant Grupo Iberostar will be used to reduce Thomas Cook’s borrowing and for general corporate purposes.
Sam Weihagen, group chief executive, Thomas Cook Group plc said: "I am delighted that we have been able to agree this transaction which will significantly reduce Thomas Cook's net debt and demonstrate our ongoing commitment to strengthen the balance sheet.
“Importantly for our customers, we have been able to maintain access to this popular portfolio of hotels through a commercial arrangement with our partner Grupo IBEROSTAR."
Completion is conditional upon shareholder approval. The transaction is expected to complete during the first quarter of 2012.
By Diane Evans
