Over 20% of Thomas Cook is owned by small investors, meaning they are among the worst-hit victims of the company’s near-collapse
More than 20 per cent of troubled travel firm Thomas Cook is owned by small investors, meaning they are among the worst-hit victims of the company’s near-collapse.
The historic travel agent has planned a rescue deal with its lenders and Chinese conglomerate Fosun which will see it handed £750million to help speed a recovery.
There’s just one problem: that lifeline will see the value of current investors’ stakes virtually wiped out.
Thomas Cook and Fosun have not yet ironed out the details of their deal.
It is unclear whether the business will even remain listed on the stock market.
If it doesn’t, the next unknown is whether small investors will be left owning a tiny sliver of an unlisted company, which they are unable to trade, or whether Fosun will offer them a nominal sum to buy them out.
Though the shares might look like a bargain, having tumbled almost 70 per cent over the last year, savers would be advised to steer well clear.
Anyone who owns Thomas Cook stock should seriously consider whether it might be best to cut their losses now and sell up, rather than risk further damage.