Travelzest agrees buy out bonus for directors

The directors of Travelzest, which owns a range of specialist operators and online retailers in the UK and Canada, have agreed a £2.6 million pay out if the firm is bought.

A statement issued on the AIM-listed firm’s website stated “the Sale Bonus is payable in full should a cash or cash equivalent value of at least 18.5 pence per share be achieved on such sale and is also subject to certain conditions including good and bad leaver provisions.”

It added the bonus and share options issued to directors on August 5, 2009, and June 30, 2010, was intended to “incentivise the Relevant Directors to ultimately achieve best value for Travelzest shareholders should any exit be forthcoming”.

Travelzest is emerging from a difficult period in which it parted company with its senior management team including founder and former chief executive Chris Mottershead, who returned to work for Tui Travel initially in Canada and now in Russia.

The firms accused him of “misappropriation of company funds” after the proposed move to Tui came to light, but eventually dropped the case, clearing him of any wrongdoing.

A new management team including group chief executive Jonathan Carroll, previously president of its Canadian interest itravel2000 and Jack Fraser, group financial director, was appointed in 2009 to develop a new “vision and strategic direction for the company”.

They along with Travelzest’s chairman, Mark Molyneux, who was appointed in 2006, would be the beneficiaries of the bonus pay out of a sale is agreed.

As well as a range of tour operator specialists including Best of Morocco and Captivating Cuba Travelzest also owns naturist holiday specialist Peng Travel and holiday.co.uk and flight.co.uk.

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