Thomas Cook looks to overseas development

£440 million sale of operator’s financial arm leaves company free to concentrate on core business

Thomas Cook looks to overseas development

Report by STEVEJONES

THOMAS Cook will look to develop its travel business overseas after completing the sale of its Global and Financial Services Division to Travelex for £440 million.

The global foreign currency provider beat off competition from financial and investment firms to secure the deal. American Express was believed to have been in the running.

Thomas Cook said the sale was part of a strategic plan to concentrate on its travel business and it will release funds to invest in e-commerce.

Chief executive John Donaldson said particular emphasis will be placed on evolving its dot-com business overseas.

“The sale will allow us to concentrate on building our travel businesses in the UK and a number of other international markets,” said Donaldson. “We see particular development ine-commerce overseas.”

Its operations in Egypt and India are expected to see significant expansion, he added.

Donaldson stressed the sale did not include its bureaux de change network in its agencies.

The businesses acquired by Travelex are Thomas Cook’s 300 foreign-exchange bureaux, including a presence at 30 airports and ports, an international foreign-exchange business for corporate clients and consumer money transmission business MoneyGram.

Travelex, which will now have 550 retail outlets, said much of the business will complement its own operations but warned jobs could go.

“There may be some rationalisation where the businesses significantly overlap, although it is too early to say where this will occur,” said a spokesman. “We will need to take a detailed look at the business.”

Widespread job losses are not thought likely.

The deal will allow Travelex to trade under the Thomas Cook brand for up to five years.

Travelex chairman and chief executive Lloyd Dorfman added: “There is an excellent fit between the groups with broad scope to integrate and develop the two businesses.”

Concentration:Donaldson has said more focus will be placed upon dot-com businesses