Travelzest has terminated efforts to sell the company’s Canadian business in favour of a management buy-out.
Travelzest targets management buyout as sale talks end
Travelzest has terminated efforts to sell the company’s Canadian business in favour of a management buy-out.
The company, which has sold or closed the majority of its UK operations, sought buyers for its profitable Canadian arm in May which includes online travel agency iTravel2000 and Cruise Professionals.
But Travelzest today announced that the formal sale process had been dropped in order to focus on negotiations with the management team.
“The current proposals being discussed value the Canadian business at a substantial premium to the current market capitalisation of the company,” a statement said this morning.
“These negotiations are still at an early stage and there can be no certainty that they will result in a sale that is acceptable to the board and shareholders.”
In a trading update, Travelzest said conditions in the company’s core Canadian markets have been “very encouraging” for most of the financial year.
However, the company “has experienced some delay in bookings in the last six weeks as our suppliers try to hold their price increases and our customers wait to see if prices fall”.
Travelzest added: “Despite this, the company expects to achieve an improved trading result at the EBITDA level both before and after exceptional items for the full year in comparison to the previous year.
“We remain confident that our leading position in the Canadian travel sector will continue to provide exceptional opportunities for growth.
“The UK businesses, all of which have either been sold, closed or are due to close, are now a small part of the group.”
Last week Travelzest suspended new business at it’s numerous tour operations including France self-catering specialist VFB Hoolidays, Captivating Cuba, Malaysia Experience and Best of Morocco.
