TVZ Travelzest

TIDMTVZ

RNS Number : 9631V

Travelzest plc

21 January 2013

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.

21 January 2013

Travelzest plc

Termination of Negotiations for the sale of Canadian Businesses and Assets

Further to the announcement made on 30 October 2012, Travelzest plc ("Travelzest" or the "Company") announces that negotiations relating to the sale of the Canadian businesses and assets to a group supported by Jonathan Carroll, Chief Executive Officer, and Adrian Cobbold, Chief Financial Officer, and their private equity backers (together the "Management Team") have been terminated.

The Independent Directors, comprising Nigel Jenkins, Mark Molyneux and Richard Hall, have not been able to reach agreement with the Management Team as to a price that properly reflects the value of the Canadian businesses and assets. The Board of Travelzest will continue to focus on growing the business to achieve value for shareholders.

In addition, as stated in the Chairman's statement that accompanied the Final Results announcement that was released earlier this month, the Board will now seek to renegotiate the terms for its existing bank loans and facilities as it is the Board's opinion that the current terms are unsustainable and are negatively impacting the profitability of the Company.

Nigel Jenkins, Non-executive Chairman commented:

"Despite considerable efforts, we have been unable to reach an agreement with the Management Team on a price for the Canadian businesses that fairly reflects their value and which would have been acceptable to a majority of the Company's Shareholders. We are confident that the Canadian businesses have a strong future and that shareholder value will be enhanced by focusing on growing these, rather than seeking a buyer at this time."

- Ends -

Enquiries:

 
 Travelzest plc 
 Nigel Jenkins - Non-Executive Chairman    Via Redleaf Polhill 
 
 Redleaf Polhill                           +44 (0)20 7566 6720 
 Rebecca Sanders-Hewett / Jenny Bahr       travelzest@redleafpr.com 
 
 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 
                                            rhall@hwcf.co.uk 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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