Travel conglomerate OCT to divest interests in two firms for 2.3 billion yuan
Theme park and tourism firm OCT Co. plans to divest its stakes of 100% in Taizhou OCT and 60% in OCT Vision. The two deals will be worth RMB 2.3 billion.
Overseas Chinese Town Co., Ltd (OCT Co.), one of China’s largest publicly traded tourism companies, announced on April 11 that it plans to fully divest its stakes of 100% in Taizhou OCT and 60% in OCT Vision. The two deals will be worth RMB 2.3 billion.
Shenzhen-listed OCT Co. is the major unit of OCT Group, one of the few tourism conglomerates and state-owned enterprises (SOE) directly under the supervision of China’s state-asset authority SASAC. Its main rival is SOE peer CTS Group, the entity formed of the HKCTS-CITS merger.
According to OCT Co.’s announcement, its 100% stake in Taizhou OCT will be transferred to OCT Group’s fully-owned subsidiary OCT East China Investment.
Taizhou OCT was set up with RMB 970 million registered capital in 2006 and has reported RMB 200 million net loss in 2016, the third annual loss in as many years.
As of the end of last year, the company’s net asset value was RMB -32.40 million and assessed valued was RMB 51.96 million.
OCT Group will acquire from OCT Co. its full 60% stake in OCT Vision for RMB 1.02 billion. OCT Vision was established with RMB 76 million registered capital in 2009 and constitutes just a fraction of OCT Co.’s businesses. (Translated by Jerry)