China Tourism Group CDFG Co Ltd (CTG) will invest RMB 1,228 million/US$178.6 million for a 49%* share in China National Service Corporation (CNSC).
The capital proposal from the powerful parent company of China Duty Free Group (CDFG), in the form of a non-public agreement**, is designed to leverage CTG’s tax free business and enhance its overall profitability, according to a Shanghai Stock Exchange (SSE) filing seen by TRBusiness.
A vote on the increased capital proposal took place at a Board of Directors meeting today (14 March) and was passed unanimously.
Travel retailer CNSC, a subsidiary of Sinopharm, operates duty free points of sale at airports, sea ports and downtown in China and through its offshore business on Hainan island.
CTG CDFG shares closed at RMB 186.35 today, increasing gradually following a dip in mid-morning trading to RMB 183.78, having opened at RMB 186.1.
*Not included in the scope of the company’s consolidated statements.
**The relevant pricing is determined based on the appraised value of assets recorded by the state-owned Assets Supervision and Administration Commission.
Asia & Pacific,