Upmarket market travel operator group Travelzest said negotiations relating to the sale of its Canadian businesses and assets have been terminated.

"The Independent Directors, comprising Nigel Jenkins, Mark Molyneux and Richard Hall have not been able to reach agreement with the management team as to a price that properly reflects the value of the Canadian businesses and assets," said Travelzest.

Following the failed takeover talks for its Canadian operations, Travelzest said it would now seek to renegotiate the terms for its existing bank loans and facilities. The travel operator had intended to use the proceeds from the sale of the Canadian business to repay bank debt.

"It is the board's opinion that the current terms are unsustainable and are negatively impacting the profit of the company."

For over a year the group has been offloading parts of its UK arm amid tough conditions, including its nudist holiday operator Peng Travel, MB Travel and Travelzest Holidays.

Non-executive Chairman Nigel Jenkins commented: "Despite considerable efforts, we have been unable to reach an agreement with the management team on a price for the Canadian businesses that fairly reflects their value and which would have been acceptable to a majority of the company's shareholders."

"We are confident that the Canadian businesses have a strong future and that shareholder value will be enhanced by focusing on growing these, rather than seeking a buyer at this time."

Travelzest shares plummeted 26% to 3.75p at 08:40 in London.



CJ

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