Travelzest wins further takeover extension

Travelzest has won a further City extension to a deadline for a possible takeover bid by Canadian company Red Label Vacations.

Travelzest has won a further City extension to a deadline for a possible takeover bid by Canadian company Red Label Vacations.

A second deadline set by the UK takeover panel passed yesterday (Monday) with the Cheltenham-based operator agreeing another delay until December 30.

Red Label’s first approach for Travelzest was disclosed in September, with a deadline for a deal to be concluded originally set for November 14. This was then extended until December 12.

The company has business interests in Canada under the iTravel2000 brand and runs operations such as Best of Morocco, naturist holiday firm Peng Travel and VFB Holidays.

Announcing the latest extension, Travelzest said: “Discussions in relation to a possible offer for the company by Red Label are at an advanced stage, however confirmation of financing for the proposed offer and acceptance of the associated bank conditions are required before Red Label can announce a firm intention to make an offer.”

It added that shareholders “should be aware that there can be no certainty that an offer from Red Label will be forthcoming”. A further announcement “will be made in due course”.

Travelzest secured debt refinancing last month in an agreement with its lending bank Barclays. The repayment date for an existing £12.5 million facility was extended to October 31, 2013 with repayments due to start in January 2013.

A new revolving facility has been introduced with a maximum initial draw down of £3.5 million, which is also repayable by October 31, 2013. The amended debt facility was agreed to allow the travel group “greater flexibility in order to better manage the business”.