Travelzest ends talks with Red Label to focus on Canada

Travelzest, parent company of itravel2000, reports that it has ended discussions with Red Label Vacations about a possible offer and will concentrate its efforts on its Canadian operations. According to officials, discussions with Red Label have ceased and the board of directors confirms that it is no longer in talks regarding an offer for the company. Further, Red Label has informed Travelzest that it does not intend to make an offer for the company and has consented to the release of this announcement. Travelzest said that considering the company’s strong Canadian presence and continued growth, the price proposed by Red Label significantly undervalued the company. Mark Molyneux, Travelzest’s chairman, commented, “Following the termination of discussions with Red Label we will now focus all our efforts on generating profitable growth in order to maximize shareholder value. The key growth area for the company remains Canada and we will concentrate the company’s efforts in this market.”The company will divest of all of its under-performing UK assets. “Creating value for our shareholders is of paramount importance to us. By divesting those assets that are not performing, particularly (in the current very difficult economic climate) in the UK, which contrasts with much better conditions in Canada, we are building a stronger business that is well positioned for future growth,”added Molyneux. Travelzest will retain a UK base in Cheltenham which will act as an integrated operational centre for the Canadian brands, plus certain developing UK brands such as, and upper market brand Travelzest Holidays.