Club Med owner Fosun buys 5% of Thomas Cook

Chinese investment firm Fosun has bought a 5% stake in UK travel group Thomas Cook.

The move consolidates Fosun's presence in the European holiday market, following its purchase of France's Club Med last month.
Fosun paid £91.9m ($140.12 million) for 5% of Thomas Cook, and it intends to increase its stake to 10%.
 
Thomas Cook shares jumped 16% in early London dealings on news of the new investment.


The business recently reported a loss of about £53m in the three months to the end of last year.

Thomas Cook said the move could lead to collaboration with Club Med, and with Fosun's other travel and leisure businesses.
Over the medium term it could also lead to access to the fast-growing Chinese tourism market.

Frank Meysman, chairman of Thomas Cook, said the tie up marked "a major milestone in Thomas Cook's 174-year history".
Fosun is paying 4.1% more per share than Thursday's closing market price of 120p. 

Thomas Cook's shares have had a rocky ride in recent years.
Two years ago its share price was 14p as the business, the pioneer of the package tour, struggled to compete in a world where the rise of the low-cost airline prompted people to bolt together their own holidays.

It appointed Harriet Green as chief executive and underwent a major reorganisation, which involved closing many of its once-familiar High Street outlets.
Ms Green abruptly left the company in November last year with its shares worth 10 times more than when she began running the business. Ms Green said her work at the company was "complete".