CHINA Travel International Investment Hong Kong has exercised its right to acquire from China Travel Service (Hong Kong) its entire interest in Shenzhen The World Miniature Co for about $424 million. The acquisition was made pursuant to a purchase option agreement reached by the two sides in October 1992 but on different terms and conditions from the original agreement. The new agreement saw the acquisition price-earnings ratio drop to 6.5 from 9.8 as stated in the original agreement. It also required World Miniature to pay an initial annual land rental of eight million yuan (about HK$7.43 million) for the site occupied by the World Miniature Scenery Park to a company related to China Travel International. China Travel International chairman Zhu Yuening said: 'Theme park operation is one of the company's principal business activities. 'The directors believe that the World Miniature acquisition will provide synergies on the company's theme park operations.' China Travel International is 74.77 per cent held by China Travel Service (Holdings) Hong Kong, which owns the entire issued share capital of China Travel Service (Hong Kong). The conditional agreement to buy the theme park was entered into on Tuesday. Under the agreement, China Travel International will acquire from China Travel Service (Hong Kong) a 51 per cent interest in the registered capital of World Miniature and all of its benefits and interests in the loan which is owing by the theme park company. The loan is about $148.2 million and is repayable on demand. The acquisition is subject to the approval by independent shareholders of China Travel International at a meeting to be held soon. The deal is expected to be completed by January 27 next year.