The company representing United Travel’s 97 franchise owners says it is considering a buy-out of the travel agency after negative fallout from its association with financially troubled Australian firm MFS, owner of the Stella Group.
The board of United Travel Holdings, which jointly owns the franchise company and United brand with Stella, says it is in discussions with Stella over the management structure.
MFS reached an agreement last week to sell 65 per cent of the Stella business to private equity group CVC Asia Pacific in a bid to raise cash.
Trading in MFS shares on the Australian stock exchange has been suspended since January 21 following a 69 per cent drop in its share price in one day on the back of investor concern over debt.
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