Fosun raises Thomas Cook stake after Brexit slump

Fosun raises Thomas Cook stake after Brexit slump

The weak pound following last week’s Brexit vote enabled Chinese conglomerate Fosun to raise its stake in Thomas Cook, according to a report today.

Fosun upped its stake in the travel group to 8.2% per cent in a vote of confidence, acquiring the shares when they fell more than 20% between Friday and the market close on Monday, the Daily Mail reported.

The Chinese giant took an initial 5% stake in March 2015 for £92 million. Fosun also has a joint venture with Thomas Cook to expand into Asia.

Fosun Group chairman Guo Guangchang had said he would take advantage of post-Brexit volatility.

He previously told Reuters: ‘For a value investor, volatility is a friend not an enemy.

“Market volatility and panic will probably bring better investment opportunities. So we are increasingly looking for development opportunities in Europe, and particularly in the UK.”

Standard Life also took the opportunity to buy more shares in the leisure group and increased its stake to more than 12%.

Shares in Thomas Cook rose 4.3%, or 2.6p to 63.15p yesterday.

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