Thomas Cook Group

Ticker TCG

Today's data summary

Market closed
% change
-8.33%
Price Pence
7.02
Change
-0.64
As of 05:34 24 Aug 2019
Market cap. Pound sterling
107.88 million
As of 05:34 24 Aug 2019

Latest updates

Thomas Cook shares fall

share price
BBC

As we approach the close of the London stock market, shares in Thomas Cook are still down more than 20%.

That's after the company said its shareholders will be diluted by its restructuring plans.

As the chart shows, the shares have fallen a long way over the last five years.

Thomas Cook shares plunge

Shares in Thomas Cook tumbled by 25% to 7.3p after it admitted that its increased capital raising plan will dilute existing shareholders' stakes.

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Thomas Cook in talks over extra cash injection

Thomas Cook plane
PA Media

Travel company Thomas Cook has said it is in talks with creditors over the injection of an extra £150m, on top of the £750m already announced.

The firm says it has made "significant progress" in finalising the key terms of a cash injection from its largest shareholder, China's Fosun, and creditors, which it announced last month.

The cash is part of a deal that would see Fosun buy Thomas Cook's tour business.

Thomas Cook now says it is in discussions with noteholders over the injection of an extra £150m.

The company said the additional capital, "will provide further liquidity headroom through the coming 2019/20 winter cash low period and ensure the business can continue to invest in its strategy".

Thomas Cook shares rocket

shop
Getty Images

Shares in Thomas Cook have jumped 28%, boosted by the disclosure that Nesat Kockar, founder and owner of Turkish tour operator Anex Tourism, has taken a stake in the tour operator.

As a reminder, Thomas Cook is in £750m rescue talks with banks and its largest shareholder, Fosun, which effectively would end up with control of the troubled firm.

While the 28% rise in shares sound impressive, it's only a rise of 1.7p to 7.1p.

In 2015 the shares traded at 160p.

'Holidaymakers understandably concerned'

holiday makers by a pool on deckchairs
Getty Images

Aashna Shroff, personal finance expert at money.co.uk has been looking at the implications of the discussions between Thomas Cook and Fosun of China on consumers.

"Holidaymakers will understandably be concerned about the plight of Thomas Cook, but it doesn't need to wreck your holiday as long as you ensure you have the right protection in place.

"Even if your airline or holiday provider is ATOL (Air Travel Organiser's Licence) protected, it is always recommended that you have comprehensive travel insurance as well before heading off on your well-deserved vacation".

As mentioned, Peter Fankhauser, chief executive of the travel company, is reassuring customers that they can book without any worries as there is enough money to continue to operate

'Desperate times' at Thomas Cook

Thomas Cook plane
Getty Images

Thomas Cook's proposed £750m rescue deal is a sign of "desperate times" at the troubled travel company, according to Markets.com analyst Neil Wilson.

The proposal would effectively hand control of the firm over to its largest shareholder, Fosun. Mr Wilson said: "Shareholders face significant dilution – basically it’s wipe out time."

He said that publicity around the travel agent's financial difficulties was also deterring potential customers from booking holidays with the firm.

"So no surprise to see tour operator bookings are down 9%, with margins remaining weak due to intense competition and promotional activity."

Thomas Cook boss: 'Our customers' holidays are secure'
Struggling Thomas Cook, which is planning a £750m cash injection, seeks to reassure customers.