As long as the deal goes through the company will be delisted from the stock exchange. The £300m will not be required as Thomas cook will have no debt as such, and will not be required to make interest payments.
It secures the long term future of the business, but shafts the shareholders.
Then I think huge changes are going to be made in the medium term.
I get the feeling that Thomas cook wanted to sell the airlines to Lufthansa, but Lufthansa’s issues of late made that deal very difficult. This deal will leave open the door to Lufthansa to take a majority stake in the airline without having to take ownership in its entirety. But that’s for the 3-5 year future term.
Interesting times ahead.
There will be no rights issue.