Phoenix Travel Worldwide plans listing with shell
Outbound travel service provider Phoenix Travel Worldwide (“凤凰旅游”) announced plans to go public using Lantian Stock as a shell, pending a share swap within Lantian.
Outbound travel service provider Phoenix Travel Worldwide (“凤凰旅游”) announced on May 30 that Lantian Stock (“湖北洪湖生态农业股份有限公司”) plans to buy 100% shares of Phoenix through issuing stock to all Phoenix’s shareholders. The deal will take place after a share swap within Lantian, in which shareholders of non-tradable shares will offer 10 shares to one share of tradable shares to gain trading rights for the non-tradable shares. After the deal, Lantian Stock will also issue stock to a select group of investors to raise up to RMB 300 million.
Phoenix Travel Worldwide operates in outbound travel, a booming sector in recent years. Official statistics show that 128 million outbound trips were made from China in 2015, an increase of 19.5% over the previous year, making China the world’s largest visitor source market for three consecutive years.
Phoenix Travel Worldwide reported net profits of RMB 12.0881 million in 2013, RMB 20.5305 million in 2014 and RMB 30.6935 million in 2015, according to its published information.
An industry analyst expert believes that Lantian Stock is expected to complete the deal and go public again within one and a half years according to plan. (Translated by Claire)