Thomas Cook share price: what’s the latest after £750 million Fosun rescue deal?

The troubled tour operator announced that it had entered talks with China-based Fosun International regarding a rescue deal earlier this month, but disgruntled shareholders may block it.

Earlier this month, Thomas Cook announced that it had entered talks with China-based Fosun International, other lenders and banks regarding a £750 million rescue deal that could save the troubled tour operator.

However, the deal could be derailed by bondholders upset about the prospect of their shares being further devalued.

Thomas Cook teeters on the brink of collapse

Thomas Cook’s shareholders may be reluctant to accept the rescue deal from Fosun International, but a better alternative is unlikely to materialise.

In May, Citigroup analysts downgraded their target price for Thomas Cook’s stock from 28p to zero pence, declaring that the tour operator was ‘worthless’ in a note to investors.

The £750 million rescue deal values the company’s shares at around 3p per share. As it stands, Thomas Cook’s share price sits at 4.76p a share as of 14:55 GMT on Wednesday.

Learn to trade stocks with IG.

Fosun to take control of Thomas Cook if deal approved

Fosun International already controls a 18% shareholding in Thomas Cook, with the Chinese conglomerate securing a majority stake in the tour operator and a minority stake in its airline operations if the rescue deal is approved.

The deal has already been welcomed by Thomas Cook pilots who contend that the recapitalisation will help boost confidence among consumers, staff, creditors and regulators.

‘Hopefully this announcement signals the beginning of the end to the uncertainty that has been hanging over Thomas Cook,’ BALPA General secretary Brian Strutton said in a statement.

‘I strongly support the company's moves to find new investment in order to ensure a strong and successful future for the tour operator and the Thomas Cook airline.’

‘On behalf of the 600 pilots employed by Thomas Cook we hope this deal comes to pass,’ he added.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.