Fast Track Application

RNS Number : 4535A

Minoan Group PLC

30 March 2012

 



30 March 2012

Minoan Group Plc

("Minoan" or the "Company" or the "Group") 

Fast Track Application and Travel and Leisure Division Update

Minoan, the AIM listed travel and leisure group, is pleased to announce the following:

Greece

·    Application to be included in the Fast Track process has now been submitted

·    Process of acceptance to be no more than 45 working days

·    Invest in Greece ("IIG") to coordinate the overall planning process

Following a lengthy and ongoing process, which started more than a year ago, the Company has submitted its final application to IIG for its Cretan project to be recognised as a strategic investment and, as such, to qualify for inclusion in the Fast Track process.  The timescale should be measured in months - a substantial improvement compared with the previous long drawn out procedure.

The process of acceptance into the Fast Track process is prescribed by law to be no more than 45 working days from the date of submission. Thereafter IIG will coordinate the overall planning process.

The new project has been re-designed and is intended to be a world class destination resort with the highest environmental and quality credentials. The Company's admission document dated 30 September 2011 contained a letter of opinion from CB Richard Ellis stating that, based on certain assumptions, the Company's interest in the land would have a value likely to be in the order of €100 million when fully consented.

The design has had to undergo a number of iterations following various changes to relevant planning and tourism laws since July 2011. At the same time, it has had to take into account changes in economic circumstances throughout Europe and, especially, in Greece.

The Fast Track law was established to expedite the realisation of projects which the Greek government considers to be in the strategic long term national interest. Once a project has been accepted into Fast Track, IIG will coordinate the overall planning process on behalf of the Company.

Travel and Leisure

·    Creation of Great UK Stays travel portal

·    Exclusive deals negotiated with hotels

·    Opportunity to cross-sell Golfkings brand

·    Deals available to Canadian partners

·    Toronto-based company Travelwatch Inc. to market the Group's other products

Minoan has created a new travel portal called "Great UK Stays". Great UK Stays will provide services to the increasing numbers of UK residents holidaying in the UK. It will offer over 300 handpicked and directly negotiated hotels, ranging in standard from three to five star properties.

Great UK Stays will target both corporate and leisure travellers and the hotels featured will range from city centre hotels to castles and country houses with exclusive offers promoted on the website. Some hotels have golf courses which it is anticipated will complement our existing Golfkings brand.

All of the promotions provided by Great UK Stays will be available to our Canadian partners who are operating 8 flights per week from Toronto to the UK this summer.

In addition, the Group has signed non-binding heads of terms with Travelwatch Inc., one of Toronto's leading online travel marketing companies, in order to market our offerings in Canada. The arrangement encompasses our Golfkings, Cruisekings and hotel offerings. Canadian websites are expected to be operational by the end of April. The Canadian market is of particular interest due to its counter cyclical characteristics in both profitability and cashflow.

Minoan is also building a dedicated "UK Breaks" website for one of the largest trade unions in the UK, with approximately 1.4m members.

Website

The Company's website has been completely redesigned to reflect the major changes in the Group's business during the past year.

Christopher Egleton, Chairman of Minoan commented:

"We are delighted to have submitted the Fast Track application. The project in Greece remains a truly exciting prospect and this latest step means that we are closing in on our long term goal of commencing work. In addition, we continue to be happy with the performance of our travel and leisure operations, which we have grown rapidly through acquisitions and organic growth."

For further information visit www.minoangroup.com or contact:

Minoan Group Plc

Christopher Egleton                                              [e-mail]

Bill Cole                                                                020 8253 4305

Seymour Pierce Limited                                     020 7107 8000

Nicola Marrin/David Foreman (Corporate Finance)  

Rivington Street Corporate Finance Limited   020 7562 3384

Jon Levinson

Bishopsgate Communications Limited              020 7562 3350                               

Nick Rome/Shabnam Bashir

 

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