News

MyTravel US sales approved

MYTRAVEL
is selling another US business while its cruise and hotel distribution
companies
will be sold
off this month following shareholder and US competition authority approval.

Lexington Services is being sold to
4202031 Canada, an affiliate of VIP International Corporation, for £4.6 million
in cash. Lexington provides electronic connectivity services between hotels and
global distribution systems and alternative distribution systems. It made a
loss in the year to September 30, 2002, of £200,000 and had net assets of £2.2
million. At completion of the sale all balances will be settled.

Meanwhile, other sales are likely to
be completed this month as expected.

The US cruise division is being sold
to National Leisure Group for £65.9 million in cash and
US
hotel distribution
business World Choice Travel to Sabre’s Travelocity for £29.9 million.

Shareholders have also approved the
sale of US car rental business Auto Europe for £50.4 million. Contracts for the
sale have now been exchanged with Soros Private Equity Investors.

MyTravel,
which has also sold US operators SunTrips and Vacation Express for £9.9 million
in cash to FS Tours, plans to use the money from the sales for working capital
rather than to pay off its £1.3 billion debt.

Share article

View Comments

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.