Intourist and Thomas Cook join efforts to tap growing opportunities in the tourism industry
Intourist, the Moscow-based traveling services providing firm affiliated with JSFC Sistema, and London-based Thomas Cook Group plc, ranked among the world's biggest travel companies, have signed an agreement to set up a joint venture (JV) in 2011.
According to the deal structure announced in Moscow in November, Thomas Cook, in order to acquire a controlling stake of 50.1% in the JV valued at $45mln that will function under the globally famous Intourist brand, paid $10mln in cash and the rest in shares. From its part, Intourist will contribute all its assets, except those in the hospitality sector. The deal closure is conditional on approval by the government, a decision that is expected in January and February next year.
Commenting on the deal, Intourist President Alexander Arutyunov said the JV will help boost Russia as a major tourist destination for travelers via introduction of new marketing strategies and products such as ecotourism. “This move is the next step in our strategy of joining the Top 10 players on the European tourism market.”
Echoing a similar view, Thomas Cook CEO Manny Fontela-Nova called the JV a part of his company’s strategy to establish a strong foothold on the Russian tourism market, one of the most attractive in Europe. “I believe that Russia within the next 5-10 years will become the biggest market in Europe.”
“This partnership will enable us combine the synergy of two very strong brands in the tourism industry that will make it a global leader in the domestic and international travel industries.”
The deal has the approval of JSFC Sistema, which jointly owns Intourist with Moskva, a hospitality and tourism services company affiliated with the Moscow Government, at the ratio of 66.2% to 33.2%, evident in the presence of Felix Yevtushenkov, a JSFC Sistema vice president, who also doubles as Intourist board chairman. “This partnership will enable us combine the synergy of two very strong brands in the tourism industry that will make it a global leader in the domestic and international travel industries.”
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