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MyTravel sells third US business for £29.9m

 

MYTRAVEL
has today announced a further sale of one of its US businesses – World Choice
Travel – for £29.9 million.

The
disposal is the third to be announced by the cash-strapped travel giant this
week, netting £105.2 million in total.

World
Choice Travel, based in Florida, is a consolidator and distributor of hotel
rooms and other travel-related products through a network of 1,700 affiliate
companies operating more than 2,300 websites in 42 countries, but focused on
north America.

WCT
made an operating profit in the year to September 30, 2002, of £400,000. The
sale will result in an exceptional profit in the year to September 30, 2004, of
£24.7 million.

The
sale is conditional on MyTravel shareholders’ approval and clearance from
antitrust regulators in the US. It is expected to be completed by mid-November.

The
announcement follows news the company is selling its US cruise business and
loss-making US operators SunTrips and Vacation Express and represents
MyTravel’s bid to raise cash for working capital for the debt-ridden group.

The date for an extraordinary general meeting for
shareholders to approve the sales has yet to be announced.

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