25th Nov 2013 09:57
LONDON (Alliance News) - Travel operator Thomas Cook Group PLC Monday said that it is selling its specialist activity-tour operator Neilson Active Holidays Ltd, to private equity firm Risk Capital Partners for GBP9.2 million.
Thomas Cook said the sale is expected to be complete around December 10.
"Building on our other recently announced disposals, it will allow us to focus on those key brands, propositions and products that will deliver our strategy for profitable growth," Chief Executive Officer Harriet Green said in a statement.
Last week, Thomas Cook said it has completed the sale of its UK corporate foreign exchange business for GBP4.5 million in cash to Moneycorp, and, in a separate deal with Collette Travel Service Inc, outsourced its UK escorted tours business. Together with TUI Travel PLC, Thomas Cook also last week said it sold most of its shareholding in UK air-traffic contract NATS Holdings Ltd., for GBP38 million.
Thomas Cook said that its Neilson business contributed around GBP1 million to the group's earning before interest and taxes for the year ended September 30. It said that as a result of the sale, it will take a GBP13 million non-cash asset impairment write down for that year.
The group is expected to report its full-year results on Thursday.
Shares in the travel company were up 3.2% Monday morning, trading at 152.74 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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