News blog

Travelzest

• BY: Andrew Hore |
• POSTED: 30/10/2012 |

Tour operator Travelzest is no longer up for sale but the Canadian operations could still be sold.

The formal sale process began on 1 May 2012 and there had been bid talks prior to that. The bid discussions have gone on for more than 18 months, but no deal could be agreed. The company’s chief executive and finance director have tabled a bid for the Canadian operations, which account for nearly all of the business.

The UK operations have been sold, closed or are going to close so Travelzest will become a cash shell. 

The Canadian market remains strong and the offer values the business at substantially more than the market capitalisation of Travelzest at the start of the day. Net debt was £12.4m at the end of April 2012, excluding restricted cash of £823,000. Some or all of that debt could go with the business but it is unclear exactly how the balance sheet will look.

At 6.5p a share, up 1p, Travelzest is valued at £9.43m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2012_37.pdf