News

MYTRAVEL’S specialist businesses could be sold off by Christmas as competition increases between companies looking to cherry pick some or all of the operator’s niche brands.

The news comes as MyTravel prepares to reveal its year-end results this week after three profit warnings and predictions of financial black holes, which could wipe £50 million off profits.

Four companies - HG Capital, 3i, Lastminute.com and Ebookers - are understood to be interested in MyTravel’s specialist operations.

Sources suggest an announcement on a deal could be made before Christmas but is unlikely to be ready in time for tomorrow’s results statement.

Venture capitalist HG Capital is considering bids for some of MyTravel’s specialist businesses, including Cresta, Bridge, Leger, Panorama and Manos.

It is working with former Airtours managing director Harry Coe on some of the bids and has a particular interest in buying coach operator Leger.

The bids are believed to be at various stages of development following a month of talks. Deals would take at least a further month to complete.

Jeremy Sharman, head of leisure investments at HG Capital, said: “We are interested in any niche operator that has a direct-sell element and high quality database.”

While many in the City are “running scared” of the trade because of problems since September 11, HG Capital has faith in the long-term prospects of the industry, he said.

HG Capital owns Travelsphere, of which Coe is a director, and has previously invested in Sunsail, Club 18-30, and used to own Belfast Airport.

Venture capitalists 3i are also understood to be interested in Leger Holidays with a view to combining it with coach operator Wallace Arnold, in which it has an investment. The company declined to comment.

Ebookers chairman and chief executive officer Dinesh Dhamija admitted approaching MyTravel about the possibility of acquiring some of its niche operators. 

“I have been told MyTravel was not interested in a deal, but would come back to me if it ever was,” said Dhamija.

Lastminute.com also said it would be interested in operations owned by MyTravel, especially Cresta and Bridge.