Fosun Tourism Group says it had limited losses in the collapse of British travel firm Thomas Cook that were well under initial speculation on the size of the ‘carry’.
Fosun said its loss in the collapse of Thomas Cook was just 327 million yuan (US$45.8 million) – not $1.5 billion, as widely reported by analysts at the beginning of the week.
Fosun Tourism and Fidelidade, two of the Shanghai conglomerate’s major subsidiaries, held 18.6% of Thomas Cook’s shares as of the end of June, making Fosun its largest shareholder.
The group had been looking at a possible recapitalization in return for control of the British travel giant, but was unable to reach agreement on that.
Fosun said the “carry” or recorded costs after accumulated impairment losses from its investment in Thomas Cook amounted to just 327 million yuan, according to a filing with the Hong Kong stock exchange.