04 November 2008

Travelzest takeover still on the table

A potential takeover of Travelzest is still on the cards and a decision is expected next month.

Issuing a trading update today, the online and specialist travel group said the potential buyer has now completed the majority of due diligence and, at this stage, there were no reasons why the original offer would be reduced.

As it stands, the cash offer for the entire issued and to be issued share capital of Travelzest is at a price of Ã&#pound;1.15 per ordinary share.

Although the potential buyer has the right to reduce the offer, any reduction would still have to be approved by the Board of Directors.

If the price remains at Ã&#pound;1.15 per share, shareholders would be asked to vote on the offer.

Chief executive Chris Mottershead said if it went ahead, the deal would be finalised by December.

Outlining trading for the year ended October 31, he said: Ã¢â¬ÅâœI am pleased with the underlying performance of the Group this year.

"The actions that we have taken in our UK on-line distribution business, Holiday Express, in the last six months have further reduced our fixed cost base whilst maintaining our ability to create first class experiences for our customers.

Ã¢â¬ÅâœWhilst there is clearly an uncertain global financial and economic landscape, the Board remains cautiously optimistic for the outlook for the 2009 financial year.Ã¢â¬~

He said overall the group was satisfied with the performance of the UK tour operating businesses in 2008.

In Canada, Mottershead said it remains pleased with the performance of itravel2000 in the second half of the year and believes that this business is well placed going in to the peak winter selling season.

By Bev Fearis