MYTRAVEL has announced plans to push ahead with its disposal
programme, following the sale of its US cruise business and loss-making US tour
MyTravel has entered into an agreement to sell its US cruise
businesses to National Leisure Group for £65.9 million in cash, while its
loss-making US-based tour operators, SunTrips and Vacation Express are being sold
to FS Tours for £9.9 million in cash over seven years.
Due to the size of MyTravel’s US cruise businesses, the sale
is conditional shareholders’ approval, on getting clearance from anti-trust
regulators in the US and on NLG having obtained the finance required. However,
the sale is expected to go through by mid-November.
MyTravel’s US cruise businesses comprises brands such as
CruisesOnly, CruiseOne, Cruises, Ship ‘n’ Shore and Landry and King. The
operator’s UK-based Sun Cruises remains part of the group.
The cruises businesses made an operating profit in the year
to 30 September 2002 of £7.1 million, while SunTrips/Vacation Express made a
loss in the year to September 30 2002 of £6 million.
MyTravel said the disposals were necessary in order to
provide sufficient working capital for the group, but it will continue to “pursue
its disposal programme” and identify cost-savings.
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