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.