MINOAN Group appears to be close to selling its Stewart Travel business after facing a hold up as the company focuses on plans to develop a luxury resort in Greece.

Glasgow-based Minoan said directors expect the company will be in a position to exchange contracts in respect of the sale of the travel agency in the next few weeks.

The Alternative Investment Market-listed company said it understood no issues had arisen during financial and commercial due diligence related to the deal.

It did not identify the proposed buyer.

Minoan, which is led by former Direct Holidays boss Duncan Wilson, said last month the sale of Stewart Travel was proceeding more slowly than previously envisaged.

The firm announced last year it would offload its travel division to allow it to focus on the development of a luxury resort in Crete.

In March it signed an exclusivity agreement with a preferred buyer for Stewart Travel.

Minoan said yesterday it is in constructive discussions with Hillside International Holdings with a view to extending the loan facility provided by that firm.

The sale of Stewart Travel is expected to provide the funds to settle the facility. It would be subject to shareholder approval.

Shares in Minoan Group closed up 6.5 per cent, 0.35p, at 5.75p