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£82m pay-out for Co-op if it parts from Cook

Operators
TTG Staff
13 April 2016

The Co-operative Group could be in line for a payday of around £82 million this autumn if it chooses to bring an end to its retail joint venture with Thomas Cook, its latest results have revealed.


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Cook has already put aside a sum of £73 million should the Co-operative exercise its “put option” and unwind the deal
that includes 230 Co-op-branded shops.

The option will force Cook to buy Co-operative’s 30% stake in the joint venture. This possibility becomes live from October – five years after the JV was established, and part of a break clause that was included, despite the JV being envisaged as a long-term project at the time.

If the Co-operative Group took this option, an agreement on final purchase and dividend figure would still have to be decided.