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Closure of formal sale process

30th Oct 2012 07:00

RNS Number : 8003P
Travelzest plc
30 October 2012
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS IN THAT JURISDICTION.

 

30 October 2012

 

Travelzest plc

Closure of Formal Sale Process, end of Offer Period, Negotiations re sale of Canadian Businesses and Assets and trading update

 

 

The Independent Directors of Travelzest plc ("Travelzest" or the "Company") make the following update announcement to shareholders.

 

Closure of Formal Sales Process, end of Offer Period and Negotiations on the Sale of the Canadian Business and Assets

 

As announced on 1 May 2012, the Independent Directors, comprising Nigel Jenkins, Mark Molyneux and Richard Hall initiated a formal sale process ("FSP") in order to seek a buyer of the Company, to unlock and crystallise shareholder value through which the Company might also be able to offer more opportunities for its employees and other stakeholders.

 

The Company received indicative proposals in response to the FSP from a number of parties. The Board decided that the most attractive proposal received was an indication of interest from a group supported by Jonathan Carroll, Chief Executive Officer, and Adrian Cobbold, Chief Financial Officer, and their private equity backers (together the "Management Team") with a view to the Management Team acquiring its Canadian businesses and assets. The Canadian business represents almost all of the revenues and future profits of the group and if such a sale completed, Travelzest would become a cash shell with no trading activity. The current proposals being discussed value the Canadian business at a substantial premium to the current market capitalisation of the Company. As a result, the Independent Directors have terminated the FSP with immediate effect to focus on negotiations with the Management Team and the Company is no longer in an offer period under the Takeover Code.

 

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.

 

The Company will continue to update the market as appropriate.

 

 

 

The Board of Travelzest makes the following update announcement to Shareholders.

 

Trading Update

 

The trading conditions in the Company's core Canadian markets have been very encouraging for most of the financial year although 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. 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.

 

- Ends -

 

Enquiries:

 

Travelzest plc

Nigel Jenkins - Non-Executive Chairman

Via Redleaf Polhill

Redleaf Polhill

+44 (0)20 7566 6720

Rebecca Sanders-Hewett / Jenny Bahr

[email protected]

Merchant Securities Limited

(Nominated Adviser and Broker)

+44 (0)20 7628 2200

Simon Clements / Virginia Bull

HW Corporate Finance LLP (Financial Adviser)

Richard J Hall

+44 (0)20 7965 6021

[email protected]

 

Notes to Editors:

 

Travelzest plc (LSE:TVZ.L) is a dynamic travel group, with a collection of online travel retailers and specialized merchant operators. Included in the Travelzest agency family are itravel2000 and The Cruise Professionals,holiday.co.uk and flight.co.uk. Travelzest is traded on London's AIM Exchange under the symbol TVZ.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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