DGAP-News: Kuoni Travel Holding Ltd.: The Kuoni Group announces recommended cash offer for Et-china
(firmenpresse) - Kuoni Reisen Holding AG / Letter of Intent
02.06.2010 18:33
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The Kuoni Group announced today that the boards of Kuoni Travel Holding
Ltd. ('Kuoni Group' or 'Kuoni') and Et-china.com International Holdings
Limited ('Et-china' or 'Company'), an AIM (Alternative Investment Market)
listed company at the London Stock Exchange, have reached agreement on the
terms of a recommended cash offer. This proposal is to be made by Kuoni,
for all the issued and to be issued shares in Et-china not already owned by
the Kuoni Group. Kuoni already owns just under 33 per cent in Et-china
following the acquisition of an equity holding in the Company in 2009. The
cash offer of CHF 1.95
(GBp 115) per share, values Et-china's fully diluted share capital at CHF
95 million1 (GBP 56 million). This proposed takeover is a major strategic
step forward in the international development of Kuoni and for its
long-term partnership with one of China's leading travel corporations.
Et-china is domiciled in Guangzhou and specialises together with its
subsidiary GZL (Guangzhou Travel Service) in group inclusive-tour
arrangements both within China and to destinations abroad. Additionally,
the Company focuses on the online sale of airline tickets, hotel rooms and
rental car arrangements to both corporate clients and individual travellers
in China. Et-china primarily operates through its 160 retail outlets, its
call centre and the well-known internet portal and possesses a very strong
customer base. Through a joint-venture, Et-china also provides the
e-ticketing service and back office support for China Southern Airlines.
For the financial year 2009, Et-china reported a total turnover of CHF 303
million
(RMB 1 909 million) and gross profit of CHF 34 million2 (RMB 211 million).
The Company currently has about 1 600 employees.
Kuoni already owns an equity holding of just under 33 per cent in Et-china
since 2009 and is proposing to acquire the rest of the issued and to be
issued shares in the Company. The cash offer of CHF 1.951 (GBp 115) per
share, values Et-china's entire fully diluted share capital at CHF 95
million1 (GBP 56 million). The overall acquisition price paid by Kuoni
including the price paid for the stake it already owns, amounts to CHF 82
million (GBP 49 million).
The present Et-china management and employees will complement the Kuoni
team and continue to build an exciting business in the rapidly developing
Chinese tourism and travel market. Et-china will be integrated into the
Division Southern Market Region within the Kuoni Group. Matthew Ng, CEO of
Et-china, will report directly to Stefan Leser, Executive Vice-President
Southern Region for the Kuoni Group.
The combination of Kuoni's Asia-Pacific business with Et-china has
significant strategic potential in terms of geographic footprint given
Et-china's strong market position and customer base in Southern China,
local business knowledge and online platform as well as the Kuoni Group's
long-term travel expertise and global customer reach.
'In acquiring our equity holding in Et-china in 2009, we began writing a
new chapter in Kuoni's corporate history and took our first step into this
key market of tomorrow,' says Peter Rothwell, CEO of the Kuoni Group. 'We
are convinced that our activities in one of the fastest growing travel and
tourism regions have vast potential; and we are equally convinced that
Et-china can make a substantial contribution to the further development of
the Kuoni Group and in our positioning as a key player in China. That's why
this proposed acquisition is a major strategic step forward in the
international development of our company and for this long-term partnership
with one of China's leading travel corporations.'
Kuoni will finance the transaction from existing cash resources. The Kuoni
Group has secured irrevocable undertakings to support the offer from 31.5
per cent of Et-china's shareholders. The transaction is subject to the
satisfaction of customary closing conditions and is expected to close in
the third quarter of 2010.
For more information please refer to the official offer announcement which
was also released to the London Stock Exchange. The scheme document, which
will include all the terms and conditions of the offer, will be posted to
Et-china shareholders, option-holders and convertible bond-holders as soon
as practicable.
1At GBP-CHF 1.6932 exchange rate as at 1 June 2010
2At CHF-CNY 6.2972 average exchange rate for 2009
3At the exchange rate at the date of the respective purchases
LAURENCE BIENZ
Head of Investor Relations
Kuoni Reisen Holding AG
Neue Hard 7
CH-8010 Zürich
T +41 (0)44 277 45 29
laurence.bienz(at)kuoni.com
02.06.2010 18:33 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Kuoni Reisen Holding AG
Neue Hard 7
8010 Zürich
Schweiz
Phone: +41 44 277 4529
Fax: +41 44 277 4031
E-mail: laurence.bienz(at)kuoni.com
Internet: www.kuoni-group.com
ISIN: CH0003504856
Swiss Security Number: 894861
Listed: Freiverkehr in Berlin, Stuttgart; Open Market in
Frankfurt; Foreign Exchange(s) SIX
End of News DGAP News-Service
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Datum: 02.06.2010 - 18:33 Uhr
Sprache: Deutsch
News-ID 21879
Anzahl Zeichen: 0
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Kategorie:
Business News
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