Thomas Cook’s share price climbed 7p to 253p after creditor banks for insolvent German retailer Arcandor completed the placing of a 43.9 percent stake in travel firm, in one of the biggest share placings in Britain in recent years.
The placing removes any uncertainty about the threat of a takeover and the future ownership of the stake. The move provided a further sign of enthusiasm returning to the stock market. Rival TUI Travel also saw its share price go up 15.8p to 272.5p.
The consortium of banks, which included BayernLB, Royal Bank of Scotland and Commerzbank, placed 376,625,636 ordinary shares in Thomas Cook on Thursday at a price of 240 pence per share, a small discount to Wednesday’s closing price of 245 pence.
The placing of the stake, which the banks had held as collateral against a loan taken out by Arcandor, raised proceeds of about $1.50 billion, the banks revealed. Arcandor defaulted on its €1.5 billion in credit lines following its insolvency filing earlier this year. A request for state help failed.
It is believed that the new position will help Thomas Cook to progress with its expansion plans which include moving into new regions such as Russia and China.
“This is the first time in our 168 year history that we have been a fully independent quoted company and we look forward to the future with a new ownership structure,” said Thomas Cook’s Chief Executive Manny Fontenla-Novoa.