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Exclusive-Travelex owners considering sale of company –sources
Global Banking & Finance Review®
Company
By Amy-Jo Crowley and Pablo Mayo Cerqueiro
LONDON (Reuters) – Travelex’s owners are exploring a sale of the British currency exchange, which fell into administration in 2020, after bolstering its finances, four sources familiar with the matter told Reuters.
The owners, which include former bondholders that took control of Travelex through a debt restructuring, are working with advisers at Barclays and Smith Square Partners to gauge buyer interest, said two of the people.
An auction is expected early next year, one added.
Deliberations are still preliminary, and there is no certainty that a sale will proceed, said the people, who declined to be named because the talks are not public.
Travelex’s 2022 accounts show Barings LLC as its largest investor with a 52% stake, followed by Corre Partners Management, Vector Capital Management and Mariner Investment Group.
Barings, Barclays, Smith Square and Vector Capital declined to comment. Corre, Mariner and Travelex did not immediately respond to requests for comment.
Formerly part of now-defunct Finablr, Travelex’s fortunes quickly turned due to the coronavirus pandemic and a cyberattack that forced it to temporarily disable its systems.
It then went through a pre-pack administration that led to more than 1,300 job losses and saw its creditors seize control.
Travelex’s revenues have since rebounded as international travel resumed with the easing of pandemic restrictions, generating sales of nearly 369 million pounds ($450 million) last year and a profit after tax of 7 million pounds.
Last week, Travelex announced a 90 million pound debt refinancing through a five-year senior term facility.
($1 = 0.8195 pounds)
(Reporting by Amy-Jo Crowley and Pablo Mayo Cerqueiro in London; Editing by Anousha Sakoui and Alexander Smith)
Foreign currency refers to any currency other than the domestic currency of a country. It is used in international trade and investments, allowing businesses and individuals to conduct transactions across borders.
Debt financing is the process of raising capital by borrowing money, typically through loans or issuing bonds. This method allows companies to fund operations or projects while agreeing to repay the borrowed amount with interest.
Corporate strategy is a comprehensive plan that outlines how a company will achieve its goals and objectives. It involves decisions about resource allocation, market positioning, and competitive advantages to drive growth.
An auction is a public sale in which goods or property are sold to the highest bidder. Auctions can be used for various items, including real estate, art, and collectibles, and can be conducted in person or online.
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