China World Trade Corporation said on Monday it has struck a deal to acquire 25 percent in a business travel investment company, CWT International Excursion Investment Ltd.
CWTC issued nine million shares of its stock to acquire the interest in CWT Excursion and is said to acquire a further 35 percent interest over the next year. CWTC will then have majority ownership as it will acquire 60 percent of CWT. Details on this possible acquisition extension were not given.
With strong tourism, business travel growth opportunities in the region, this strategic acquisition provides China World Trade with entry into the high margin tourism segment of the travel business. We believe this investment makes both short and long-term sense and our Board of Directors sees a significant economic benefit to China World Trade, said Chi Ming Chan, CEO of China World Trade Corporation.
CWT Excursion owns a 51 percent controlling interest in Suzhou Tongli International Excursion Development Ltd., which is the only legal tourism operator in the province of Tongli, Jiangsu in China.
With more than 260,000 visitors in 2005 alone, Tongli town is quickly becoming one of the most popular domestic and international tourist destinations in China, Chan added.