April 22, 2020 / 4:09 PM / a month ago

Forex firm Travelex looks to sell itself amid troubles at parent company

(Reuters) - Currency service provider Travelex has put itself up for sale, the London-based company said on Wednesday, a month after parent Finablr warned that it was preparing for a potential insolvency.

FILE PHOTO: Signage is seen on a branch of Travelex Currency Exchange in London, Britain, January 8, 2020. REUTERS/Toby Melville

Travelex has been grappling with its own share of problems after the company became the target of a ransomware attack in late December that could lead to an estimated 25 million pound ($30.76 million) hit to its first-quarter underlying core earnings.

“As part of its continuing assessment of strategic options to maximize value for its stakeholders, the Board of Travelex Holdings Limited has decided to seek offers for the Travelex group, and has communicated this intention to Finablr plc,” the company said in a statement.

“The company will continue to update stakeholders on the sale process and parallel discussions with creditors as appropriate,” it added.

Travelex provides forex services for customers of HSBC (HSBA.L), Barclays (BARC.L), Virgin Money (VMUK.L) and the banking arms of British retailers Tesco (TSCO.L) and Sainsbury (SBRY.L) through its automated order placement service.

Although Travelex operates independently of its parent, some of Finablr’s woes did weigh on the company’s business.

Finablr has taken a big hit after U.S. shortseller Muddy Waters took aim at NMC Health (NMC.L), which shares the same founder - the UAE-based Indian billionaire B.R. Shetty.

Shetty resigned from the board of Travelex days after Finablr, whose operations in the United Arab Emirates were seized by the country’s central bank, flagged going concern doubts.

There have been concerns that Shetty’s financial troubles are reflecting on other companies in his portfolio.

($1 = 0.8127 pounds)

(This story fixes typo in headline.)

Reporting by Shanima A in Bengaluru; Editing by Amy Caren Daniel and Anil D'Silva

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