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Greenland races for controlling stake in China Eastern’s travel agency affiliate

01/22/2019| 4:58:47 PM|

Wanda Group, Hainan Airlines and Fosun International have all shown an interest in a deal, though Shanghai-based Greenland is likely to be the final participant.

China Eastern is looking for a cash deal for a 65% stake in Shanghai Airlines Tours International, the Shanghai-based airline said in a statement through the China Beijing Equity Board.

Wanda Group, Hainan Airlines and Fosun International have all shown an interest in the deal, Yicai Global learned, though Shanghai-based Greenland is likely to be the final participant. Greenland aims to expand from property into tourism, hotels as well as trade and commerce. It also holds a 5% stake in China Eastern Airlines' logistics unit.

Shanghai Airlines Tours International is a traditional travel agency. While it does not have clear advantages over large domestic agencies, it has earned a strong reputation and a high level of brand awareness over the years.

The company recorded annual losses of RMB 28.5 million (USD 4.2 million) and RMB 18 million in 2015 and 2016, respectively, the CBEB statement said. While it posted a profit of RMB 26.8 million in 2017, it again slipped to a RMB 13 million loss for the first 11 months of last year.

Greenland Hotel Group has also changed its name to Greenland Hotel and Tourism Group. It plans to nurture tourism operations with hotel management at its core over three years with a total annual revenue goal of RMB 20 billion (USD 3 billion).

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TAGS: China Eastern | Greenland
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