China Travel International Announces Restructuring PlansHong Kong-listed China Travel International Hong Kong Limited announced here Thursday the restructuring plans with its controlling shareholding company China Travel Service (Holdings) Hong Kong Limited (CTS Holdings).According to the conditional agreement, China Travel International will acquire China Travel Service (Hong Kong) Limited (CTS HK), 62 percent interest in China Travel Net Limited (CT Net) and Hotel Grandeur Macao from CTS Holdings. China Travel International will also sell its 40 percent stake in China Travel Roads & Bridges JV Investment Limited to CTS Holdings. The aggregate consideration of CTS HK and CT Net is 1,671 million HK dollars (214 million US dollars), whereas the consideration of Hotel Grandeur Macao is made at 240 million HK dollars (30.7 million dollars). Zhang Xuewu, vice-chairman of China Travel International, said it is the intention of CTS Holdings to inject CTS HK into the company in order to enhance its business, strengthen its role as a listed tourism flagship and its profitability. Upon completion of the transaction, the business focus of China Travel International will be more prominent, he said. With a comprehensive range of tourism business, an extensive distribution and operation network, excellent support facilities, China Travel International will definitely become a major force in tourism industry enjoying incomparable business strengths. Zhang said, "With China's accession into the WTO and the opening of Hong Kong's Disneyland theme park, tourism activities to and from Hong Kong and the Chinese mainland will increase significantly." "This will bring immense business opportunities to China Travel International," he said. "The company's management is fully dedicated to the development of China Travel International and we have every confidence in its success." |
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