bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Sandy Li

China Travel International Investment (CTII) has agreed to pay PCCW and Softbank Investment International (Strategic) HK$80 million for a 20 per cent stake in an online ticketing operator.

After the acquisition, CTII's stake in China Travel Net will increase to 100 per cent.

At the height of the Internet bubble in 2000, Softbank and Cable & Wireless HKT, later taken over by PCCW, paid HK$200 million for the 20 per cent stake in China Travel Net. The deal represents a HK$120 million loss for Softbank and the then Cable & Wireless HKT.

The acquisition price was arrived at with an estimate that China Travel Net and its subsidiaries would generate a net profit of HK$44 million for the financial year to December 31.

Last year, China Travel Net's profit rose 10.62 per cent to HK$36.24 million.

CTII said the purchase would be financed by the group's internal resources.

CTII managing director Shen Zhuying said the acquisition would result in a better allocation of resources in the development of China Travel Net.

China Travel Net's principal activities are the trading of computer equipment, provision of computer service and Internet travel agency services, and the operation of a Web site.

Mr Shen said it was not the right time to float China Travel Net on the stock market considering the bearish sentiment in Hong Kong and the United States.

'But we will proceed with such a plan after seeing an overall improvement in the investment climate,' he said.

In March 2000, CTII intended to float the online ticketing operation on the Growth Enterprise Market when it paid HK$180 million for an 18 per cent stake in China Travel Net.

A year later, CTII increased its stake in China Travel Net to 80 per cent after acquiring another 62 per cent from its parent, China Travel Service (Holdings) Hong Kong. The 62 per cent stake was part of a HK$1.9 billion asset sale by its parent.

Mr Shen said the operation of China Travel Net would be in line with the company's tourism-related expansion in Hong Kong, China and overseas.

As of December 31, the net asset value of China Travel Net and its subsidiaries was HK$94.72 million.

China Travel shares on Wednesday closed at HK$1.16, up 0.87 per cent, on a turnover of HK$2.66 million.



CTII buys final 20pc of China Travel Net