China Youth Travel Service, one of the country's three largest travel agencies, has partnered Jiaweishijie Equity Investment Partnership to buy a 10% stake in Beijing Gubei Water Town Tours for RMB 850 million (USD127.1 million) from Beijing Energy Holding.
CYTS Tours will pay RMB 438.7 million for a 5.1% stake through the deal, the Beijing-based tour operator said. Zhuhai-based Jiaweishijie will take a 4.8% share for RMB 411.3 million.
Gubei Water Town, located at the town of Gubeikou in Beijing's Miyun District, is backed by the steep Simatai section of the Great Wall. The resort achieved business revenue of RMB 991 million in 2017, with a net profit of RMB 112 million. It posted income of RMB 689 million and net profit of RMB 201 million for the first eight months of last year.
The Chinese travel agency has valued Gubei Water Town for a while. It already held a 41% stake in the resort before the deal in partnership with Wuzhen Tourism Development. Its second-largest shareholder is Boston-based IDG Capital, holding a 30% stake and BEH is the third-largest.
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