Nanyuan cooperates with BTG
- Details
- Category: Ningbo Business
- Published: Tuesday, 01 July 2014 10:06
Zhejiang Nanyuan Holding Group signed a cooperation framework agreement with Beijing Tourism Group (BTG). BTG will invest in Nanyuan Holding group to jointly develop the hotel of Nanyuan Holding.
According to its announcement, BTG will buy 70% of the share of Nanyuan Holding with ￥2.8bn. After the asset restructuring, Nanyuan Holding Group will still have the hotel asset, real estate, hospitals and other commercial assets like Nanyuan Flower Expo Garden, Zhoushan Taohua Island Scenic Spot, Taizhou Nanyuan Business Hotel, Nanyuan Exhibition Business Hotel and Nanyuan Inn. The management system of the company and the hotel will remain the same after restructuring. The net capital for the cooperation is ￥0.4bn.
Le Zhiming, the president of Nanyuan Holding Group, thinks that BTG is the largest tourism enterprise in the country and is also a state-owned enterprise, with rich resources and management experience of tourism. But it has few businesses in Southern China; Nanyuan is a hotel with good reputation in Zhejiang Province. So it is a powerful combination.
Ying Zhuanping, the secretary general of Ningbo Hotel Association is very optimistic about this transaction, which he reviews as an optimization of resources under the economic market context. With its chain hotels, business net, strong capital, BTG will help to boost Nanyuan’s business in the country. It is also likely for Nanyuan to take over the business resources of BTG in the future.
Investors also seem optimistic about the transaction. On June 25, BTG(600258) closed with 14.73 per share, up 1.80%. CITICS also graded BTG with "Increase" on June 25.
