Thomas Cook is now a holding company for all investments of Fairfax in this region. The premium for a holding company is low (ie discount from intrinsic value is higher than normal). How much value is added to the stock of Thom Cook after the IPO of Quess is anybody’s guess as details are not available. I feel that we should wait and watch the developments before coming to any firm conclusion about moving out of the stock.
Thomas Cook India ties up with ItzCash to expand outreach in remittance market. This will expand their reach in Tier-II and Tier-III cities and expand their remittance revenues.
Quess corp in final stages of going for IPO… Does it re-rate the stock in a positive way as it is a very profitable subsidiary for Thomas Cook? Opinions are invited. Thanks
http://www.equitybulls.com/admin/news2006/news_det.asp?id=175574
So shareholders of the thomas cook will get the confirmed allotment???
Any body explain it so many acquisition in one roof how can evaluate the company …
Disclosure : Not Invested.
I found something interesting on the MicroCap blog in the comment section:
Given Prem Watsa is forking out INR 500 cr for Issac of Quess - there must be something in it. Does he see him as an intelligent fanatic and therefore paying the extra $$ this is close to US 100 mio (i reach this no from the thread and have not done any independent analysis)
Pls find the extract re comments:
A primary question making this analysis difficult for the investor: how much of a premium to pay for what appears to be great management. If you have a graduating class at Harvard or MIT, how much more should you pay to participate in the following 30 year career of the person with the highest marks versus the person with the lowest? A hundred percent more? A thousand percent more? I imagine that on average, with many losers, but on average I’d think that a thousand percent more would be probably worth it. To some extent it is like how much more a professional football team should pay the college running back with the fastest 40 yard dash time versus a running back with the slowest time. I guess pass completion percentages are also important, but the issue for an investor is how much of a premium is worth paying for the best executives. Not an easy question.
Also many executives achieve a degree of success and become complacent. For an excellent book on this, see Wareham’s Way, by a headhunter, John Wareham, whose consulting practice helped many large corporations hire new CEOs. Wareham noticed over the decades that many CEOs, after achieving a degree of success would become self-destructive — giving up when they reached a degree of success, according to Wareham, that exceeded that of their father’s. The human psyche is a complicated place (my girlfriend says that as she motions with her thumb over her shoulder in my general direction).
end
Disc: invest at lower levels and continue to invest at current levels.
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Quess corp has filed for an IPO and here is Red herring prospectus. Take a look , must read.
Do the investors of Thomas Cook get shares of Quess when the stock is listed?
No @akiagarwal - TC shareholders will not get Quess shares in the IPO. Quess will become listed subsidiary of listed holding cum operating company (Thomas Cook). If Quess can get a valuation anywhere close to the absurd multiple its competitor Teamlease has got, it would be a good outcome for TC shareholders at least from a short term sum of parts basis
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Has anyone seen TCs results? Can’t find on BSE & TC website
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Still no news on results. Bit worrying now
Results are on NSEOutcomeofBoardMeeting28052016NSE.pdf (2.8 MB)
Numbers look good at operational levels. There’s a Rs. 9385 Lacs exceptional charge which ends up give Rs. 7000+ Lacs Net Loss.
Each business segment has shown good growth YoY
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Arsh,
As TC holds 69% in Quess, Would it not be required to give the shares to TC shareholders on quess listing. If not how will the TC shareholders benefit ?
Hi @frozenraj, no - there is no legal requirement nor any commercial intent for any distribution of shares. The benefit to TC shareholder is only indirect as a proxy in a sum of parts valuation - this could potentially reduce holding company discount but that is not a guarantee
Ok , But is it given that the distribution of shares would not be done by the management or are we just assuming it.
@frozenraj - Quess DRHP (you can download from SEBI website) doesnt make any mention of it. Nor have I received or seen any communication as a TC shareholder. Safe to assume it will not be done, in my opinion, at least in the immediate future. Longer term is anybody’s guess
Interesting Forbes article on Quess:
The article mentions Quess’s growth plans and makes a comment that Quess wants to raise Rs 400 cr in the IPO for 10% dilution. If they get similar valuations to Teamlease, the number is not as farfetched as it appears at first glance.
The following is the link to the article published in Alpha Ideas - talking about forthcomong Quess IPO and the commitment of AJIT ISSAC in the company.
Worth a read.
http://alphaideas.in/wp-content/uploads/2016/06/Quess-Note-3.pdf
i had a question:
while quess corp lists at Rs.500; why has Thomas Cook dropped from Rs. 225 to Rs. 190 although the holding of Quess shares in Thomas Cook are 60%.
Cannot reconcile the logic here.
Disc: invested
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