Jin Jiang subsidiaries transfer 100% Hubs1 equity to WeHotel
Jin Jiang Hotels announced on April 5 that the company and Jin Jiang Capital plan to transfer 100% equity interests in Hubs1 to WeHotel for a total consideration of RMB 553.08 million.
This comprises 10% equity interests in Hubs1 held by Jin Jiang Hotels for a consideration of RMB 55.308 million, and 90% equity interests in Hubs1 held by Jin Jiang Capital for a consideration of RMB 497.772 million.
As at the date of the announcement, WeHotel is an associate of Jin Jiang International, the controlling shareholder of Hong Kong-listed Jin Jiang Hotels, by virtue of the direct holding of 45% equity interests in WeHotel by Jin Jiang Capital, a wholly-owned subsidiary of Jin Jiang International.
“The acquisition of equity interests in Hubsl by WeHotel will be conducive to the long-term development of WeHotel,” Jin Jiang Hotels said in the announcement.
WeHotel, i.e. Shanghai Qi Cheng Network Technology Co., Ltd. (上海齐程网络科技有限公司), is a limited liability company based in China principally engaged in technological development, consultation, services, e-commerce and others.
Hubs1, or Hui Tong Tian Xia (汇通天下), is a hotel system service provider in Shanghai. Hubs1's audited net asset value in 2016 was RMB -99.58 million, according to the announcement. Audited net loss (both before and after taxation) amounted to RMB48.56 million.