Travelzest subject of acquisition talks

Travelzest is currently involved in talks that may lead to a possible buy-out of the travel operator.

There is reported interest in the specialty and online travel company by both Thomas Cook and TUI Travel – two travel operators that have been actively acquiring other companies in the business since they went through mergers in 2007.

Other names that have been brought up in the speculation surrounding a buy-out are Western and Oriental, and the Australian Stella Travel Group. Both are smaller firms that are growing in size through acquisitions, and both reportedly have the money to spend.

In a response to a “recent rumour and press speculation” about a possible buy-out offer, Travelzest released a statement on Friday indicating that it could “confirm the company is in the early stages of discussions over a potential cash offer for the entire issued and to be issued share capital of the company at a price of 115 pence per ordinary share.”

The statement continued: “There is no certainty the talks will result in an offer being made for the company. This announcement is being made with the agreement of the potential offeror.”

Following the release of the statement by the company, shares in Travelzest rose by 14 per cent.

Travelzest owns flight.co.uk and holiday.co.uk, as well as specialised tour operators in both the UK and in Canada.

For the first six months of its fiscal year ended 30 April, it reported an increase in pre-tax profits of 36 per cent. Its annual turnover was also up, by 20 per cent, to a total of £16.3 million.

www.travelzestplc.com