MYTRAVEL’S
specialist businesses could be sold off by Christmas as competition increases
between companies looking to cherry pick some or all of the operator’s niche
brands.
The news comes as
MyTravel prepares to reveal its year-end results this week after three profit
warnings and predictions of financial black holes, which could wipe £50 million
off profits.
Four companies – HG
Capital, 3i, Lastminute.com and Ebookers – are understood to be interested in
MyTravel’s specialist operations.
Sources suggest an
announcement on a deal could be made before Christmas but is unlikely to be
ready in time for tomorrow’s results statement.
Venture capitalist
HG Capital is considering bids for some of MyTravel’s specialist businesses,
including Cresta, Bridge, Leger, Panorama and Manos.
It is working with
former Airtours managing director Harry Coe on some of the bids and has a
particular interest in buying coach operator Leger.
The bids are
believed to be at various stages of development following a month of talks.
Deals would take at least a further month to complete.
Jeremy Sharman,
head of leisure investments at HG Capital, said: “We are interested in any
niche operator that has a direct-sell element and high quality database.”
While many in the
City are “running scared” of the trade because of problems since September 11,
HG Capital has faith in the long-term prospects of the industry, he said.
HG Capital owns
Travelsphere, of which Coe is a director, and has previously invested in
Sunsail, Club 18-30, and used to own Belfast Airport.
Venture
capitalists 3i are also understood to be interested in Leger Holidays with a
view to combining it with coach operator Wallace Arnold, in which it has an
investment. The company declined to comment.
Ebookers chairman
and chief executive officer Dinesh Dhamija admitted approaching MyTravel about
the possibility of acquiring some of its niche operators.
“I have been told
MyTravel was not interested in a deal, but would come back to me if it ever
was,” said Dhamija.
Lastminute.com also
said it would be interested in operations owned by MyTravel, especially Cresta and
Bridge.