VAT Refund Firm Eyes Sale Amid Government Row

One of the world's leading providers of VAT refunds to international travellers is being put up for sale amid a furious attack by Government ministers on major British retailers.

Sky News has learnt that the owners of ‎Fintrax Group, which is based in Galway in Ireland (Other OTC: IRLD - news) , are to begin talks with prospective buyers within weeks.

The news comes just days after the Treasury accused airport retailers of misleading customers by failing to pass on refunds in order to bolster their profits .

Fintrax is owned by Exponent Private Equity, a buyout firm which has invested in companies such as Quorn, the range of meat-free foods, and the handbag-maker Radley.

Exponent (NasdaqGS: EXPO - news) has appointed investment bankers at Jefferies to oversee the sale.

Established in ‎1985, Fintrax owns‎ subsidiaries including Premier Tax Free, which operates across nearly 30 countries and provides retailers with "an innovative and easy-to-use tax-free shopping solution, and shoppers with a quick and comprehensive refund network".

The group also owns a payments systems business which offers 'dynamic currency conversion', which enables consumers to pay for goods in their domestic currency while travelling abroad.

Exponent does not provide detailed sales and profit figures for Fintrax but insiders said on Saturday that it would expect to sell the company for much more than the €160m it paid to acquire it in 2012.

It emerged this week that retailers including Boots, Dixons and WH Smith (LSE: SMWH.L - news) were asking airport passengers to show their boarding passes at airside outlets, implying that they would benefit from the VAT savings, but without passing them on.

David Gauke, the Treasury Minister, criticised retailers for the practice, some of which said they were unable to adopt a dual-pricing structure.

Mr Gauke's Labour shadow, Gordon Marsden, called on the Government "to ensure that customers are being treated fairly so that it is not just retailers who can benefit from the relief".

Exponent declined to comment on its plan to sell Fintrax.