Thomas Cook Group said it will take full control of its UK retail store network, following notification by The Co-operative Group of the decision to exercise its option over its stake in their Joint Venture.
Under the terms of the JV agreement, Thomas Cook will purchase The Co-operative Group’s 30 per cent stake and Central England Co-operative’s 3.5 per cent stake for £50.0m and £5.8m, respectively, in cash.
Following completion, which is expected in November 2017, Thomas Cook will own 100 per cent of the UK retail stores business.
The JV was formed in October 2011 through the merger of the travel retail businesses of Thomas Cook, The Co-operative Group and Midlands Co-operative (now Central England Co-operative).
The JV currently has 764 stores in the UK across two brands: Thomas Cook and The Co-operative Travel. Thomas Cook retains the right to use the Co-operative Travel brand until November 2018.
The financial results of the JV are already fully consolidated in Thomas Cook Group’s consolidated financial statements and, as a result, the transaction is not expected to have a material impact on the Group’s profit and loss account.
Story provided by StockMarketWire.com