/ 27 September 2000

LEISURENET SELLS OFFSHORE OPERATIONS

SA HEALTH and fitness group LeisureNet says it has signed a letter of intent to dispose of all of the assets of its offshore operations to US-based Fitness Holdings Worldwide. The announcement signals a sudden reversal of strategy for LeisureNet, which last month said it was thinking of seeking an overseas listing to help consolidate its hold in the international leisure market. LeisureNet said in a statement that the disposal involved its 57.8% interest in Healthland International, which operates 22 clubs in Europe and Australia.It did not say how much the proposed deal would be worth. “The aggressive roll-out strategy and programme of Healthland has caused undue pressure on the management and financial resources of LeisureNet,” the company said. It added the disposal would enable it “to focus on its local operations and core business, the Health and Racquet Club, where it is the dominant player.”