Travelzest and Red Label cease offer talks
Shares in upmarket market travel operator group Travelzest plunged more than 20% after the firm announced it has ceased offer talks with Red Label Vacations.
Shares in upmarket market travel operator group Travelzest plunged more than 20% after the firm announced it has ceased offer talks with Red Label Vacations.
Red Label had made an indicative proposal which offered a price at a premium to the current share price, but Travelzest felt the offer "significantly undervalued" the company.
The firm has also announced plans to improve underlying operating profits for the business by around £1.5m a year with the re-focusing of the group on its Canadian operations as it continues to divest the majority of its UK operations.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Mark Molyneux, Travelzest's Chairman, said: "Following the termination of discussions with Red Label we will now focus all our efforts on generating profitable growth in order to maximise shareholder value. The key growth area for the company remains Canada and we will concentrate our efforts in this market.
"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."
The share price fell 22.39% to 6.5p by 08:43.
NR
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Dividend heroes: the investment trusts that have increased their dividends for 20+ years
Investment trusts can be a good option for income-focused investors – but which trusts have consistently increased their dividends over the past 20 years?
By Katie Williams Published
-
Six reasons not to top up your state pension
A deadline to buy National Insurance credits and top up your state pension is fast approaching. Here’s why it may not be worth it for some people
By Ruth Emery Published