Thomas Cook is selling its stake in Thomas Cook India to Fairbridge Capital for £94 million.
The agreement to sell its 77% share to the subsidiary of Fairfax Financial Holdings follows an auction process.
As part of the deal, Fairbridge will be given a licence over the Thomas Cook brand for 12.5 years in the countries where Thomas Cook India currently operates.
The sale is part of the group’s disposal programme to reduce debt.
Completion of the sale will be conditional upon the approval of Thomas Cook shareholders and Indian regulatory approval, see previous story.
The sale of Thomas Cook India is expected to complete within the current financial year.
Sam Weihagen, Group chief executive said: "I am pleased to be able to announce this disposal, which is a further step in improving the Group’s financial position and demonstrates our on-going commitment to reducing debt and strengthening the balance sheet."
By Diane Evans
