Mystery travel firms step in to buy W&O brands
Western & Oriental revealed today that it has agreed to sell its tour operating businesses to one of two well-known names in the travel industry.
New chairman Pavlos Savvides, who took over yesterday following the resignation of former chairman and media tycoon Andrew Neil, said the company had received five offers for its tour operating brands and had decided to pursue two of them.
"We accepted the two highest offers, which also had minimal conditions, and we will sell to whichever one is able to complete the deal," said Savvides.
Whilst he refused to reveal the names of the bidders, Savvides added: "Both of the parties are already involved in travel; they are not big, big companies but they are well-known names," he added.
In a statement to the London Stock Exchange today, the company said the sale was conditional on a substantial deposit being received by January 31 and subject to completion of the sale by February 28.
"The transaction will result in W&O disposing of the brands and assets relating to tour operating business, including forward bookings and customer monies relating to those bookings," it said.
To ensure that the company is able to proceed with the sale, director Raj Kumar has agreed to extend his shareholder loan until 28 February 2011.
The company owes several travel brands including W&O Travel, Regent Holidays, key2holidays and iceland2go.
Completion of the sale will be subject to shareholder approval, which will be sought at a General Meeting, added the statement.
The troubled company, which made a £7.8m loss in the last financial year, saw the resignation of another director, Jeremy Goldberg, yesterday, who left the company just days after Andrew Neil. The latter resigned after less than two months as chairman.
W&O said it was planning to appoint additional non-executive directors before the end of February.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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