Kuoni acquires holding in Chinese travel company Et-china
The Kuoni Group acquired an equity holding of about 32% in
Et-china.com International Holdings Limited (Et-china) as of 3 June
2009. The holding was previously owned by Gandhara Master Fund Ltd.
The acquisition makes Kuoni the biggest single shareholder in this
important Southern Chinese travel corporation: Et-china is one of
South China's best-known tour operators through its GZL subsidiary,
and also provides a leading internet platform in China for individual
travel arrangements. The acquisition is a major step in Kuoni's
endeavours to substantially expand its activities in the fast-growing
Chinese travel market.
Founded in Guangzhou in 2000, Et-china today owns a majority stake in
Guangzhou International Travel Services (GZL), which specialises in
group inclusive-tour arrangements both within China and to
destinations abroad. GZL is one of South China's best-known travel
brands, and also holds a licence to offer foreign travel products.
Et-china also operates a leading internet platform in China for air
tickets, hotel reservations and rental car arrangements for
individual travellers. And the company further maintains a joint
venture established in 2003 with China Southern Airlines, the
country's biggest air carrier, under which it is the sole distributor
of the airline's e-tickets. With some 160 travel agencies, its call
centre and its well-known internet portal, Et-china is well
positioned within the Chinese travel market. The company has a
customer base of about 1.5 million, and has been listed on London's
AIM stock exchange since August 2007. Et-china generated total
turnover for 2007 of about CHF 200 million, and currently has around
1 400 employees.
Kuoni acquires the holding of about 32% of Et-china from Gandhara
Master Funds Ltd., which was to date the company's biggest single
shareholder. The purchase price for the acquisitions of the equity
holding amounts to GBP 5.3 million (around CHF 9.2 million). Kuoni
will also assume a seat on the Et-china board of directors. In
accordance with the company's articles of incorporation, the Et-china
board has approved Kuoni's acquisition of this stake of over 30%
without the need to make an offer to acquire the company in full. The
new equity holding will be assigned to Division Style within the
Kuoni Group.
"In acquiring its holding in Et-china, Kuoni is embarking on a key
long-term strategic partnership with one of China's most important
travel corporations," says Peter Rothwell, CEO of the Kuoni Group.
"This expansion of our activities in China is one of the biggest
milestones to date in the more than 100 years of Kuoni's company
history."
For full documents please see attached links.
For further information:
_________________________________________
Laurence Bienz
Head Investor Relations
Kuoni Travel Holding Ltd.
T +41 44 277 4529
laurence.bienz@kuoni.com
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