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MyTravel's pounds 20.8m sell-off to stay afloat.

Beleaguered package holiday group MyTravel is selling its foreign currency business to Travelex for pounds 20.8 million in a bid to stay afloat.

MyTravel Financial Services was set up three years ago to supply currency to the former Airtours group's 700-strong Going Places branch network.

Based in Woking and known as MTFS, the unit employs 110 people across the UK.

Travelex will now ensure customers booking holidays with MyTravel have enough euros and dollars for their trip.

MyTravel will receive an upfront payment of pounds 12.8 million. The remaining pounds 8 million has gone into a joint account which will be released to MyTravel by the first anniversary of completion. MyTravel Retail has also agreed that MTFS will supply its travel agencies with foreign currency.

The retail unit will receive a share of revenues from the supply and sale of foreign exchange to its customers.

MyTravel chief executive Peter McHugh said: 'The transaction enables the group to realise its investment in a non-core business at an attractive value, while also continuing to generate revenue from the provision of retail foreign exchange services by means of the FX foreign exchange business arrangement.'

The news comes a day after MyTravel confirmed it was cutting staff numbers by almost 2,000 as it moves to safeguard its future. Accounting problems and the aftermath of September 11 left MyTravel with annual losses of pounds 72.8 million.

MTFS was formed as a separate company within Manchesterbased MyTravel in October, 2000, to take over the operations of the in-house travel money business of Going Places.

Shares closed up .38p at 11.49p.
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:Apr 5, 2003
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