Saga Group PLC (LON:SAGA) has delayed the sale of tour operator Titan Travel as the sector grapples with the consequences of the coronavirus outbreak.
The seller of holidays and insurance for the over 50's was set to auction the arm, which provides holiday packages worldwide and has an estimated value of £100mln.
READ: Saga sells motorcycle insurance broker Bennetts for £26mln
Several private equity firms were interested in the business, Sky News reported.
The delay is a blow for Saga, which is under pressure to separate its financial services and travel operations.
The travel arm was already struggling in the wake of the collapse of Thomas Cook, which is expected to hit profits by £4mln.
Last month, Saga kicked off the disposal agenda by offloading its motorcycle insurance arm, Bennetts.
It was the first transaction by new chief executive Euan Sutherland, who started in December after leaving Superdry PLC (LON:SDRY) earlier in 2019.
Shares dropped 3% to 31.18p on Monday afternoon.