Travel startup Utour announced on December 3 that it is planning a strategic partnership with Shanghai-based Uzai Internet Technologies and will give the latter a RMB60 million entrusted loan with a four-year repayment period at 6.2% annual interest rate.
Utour has signed an equity transfer agreement with Uzai shareholder Daishan Li to receive his 15% equity stake in Uzai.com, an online company established in July 2004 that is now planning to acquire full ownership of its online travel arm Shanghai Uzai International Travel.
Uzai Travel had RMB23.87 million in total assets, RMB79.4 million total liabilities, RMB55.5314 million net assets as of December 31 2013.It also had RMB360.52 million reported revenue in 2013 and RMB8.0464 million net loss.
Utour said it has already signed a strategic partnership agreement with Uzai.com and received a portion of the latter’s shares. Their partnership in equity, products, technology and geographic areas will enable both parties to complement each other for joint development and ensure capital requirements are met for daily operations with the entrusted loan. The bank loan will increase Uzai.com’s capital allocation efficiency, consolidate the partnership, strengthen its profitability and maximize shareholder value.(Translation by David)
