CITS and HKCTS to merge into largest state-owned travel enterprise
The CITS Group Corporation and the HKCTS Group Corporation are planning a possible consolidation. The plan, yet to be finalized, will have to be approved by the authorities.
The CITS Group announced on February 23 that it had been notified by its controlling shareholder, the CITS Group Corporation, that the corporation was planning a potential merger with China National Travel Service (HK) Group Corporation (HKCTS), and the plan is subject to approval by government authorities when finalized.
The announcement also stated that there would be no major asset restructuring or major impact on the company’s normal operation, and the CITS Corporation will promptly disclose all progress on the issue in accordance with laws and regulations.
Speculative reports emerged in November last year that HKCTS and CITS might form a new CITS, or that CITS might merge with HKCTS and Overseas Chinese Town (OCT) into one integrated state-own travel enterprise.
CITS Group issued a clarification on November 6 stating that that all potential consolidation of state-own enterprises must be decided by supervising government authorities and the group’s shareholder confirmed that CITS Group Corporation had not received such notification as yet. The group also stated that neither the group nor its controlling shareholder had filed any application for such consolidation plan with HKCTS or OCT. (Translation by Jerry)