The board of Shun Tak Holdings Limited has announced a restructuring of its operations with China Travel International Investment Hong Kong Limited (CTII) to create a new company that will be responsible for all cross-border transportation services in the Pearl River Delta and in the Guangdong- Hong Kong-Macau Greater Bay Area.
The information was released through an announcement Shun Tak made to the Hong Kong Stock Exchange last Friday after trading hours.
In the statement, the company announced that it had entered the agreements to “implement the Proposed Restructuring for transforming the Target Company into a new transportation platform for the provision of cross-boundary transportation services.”
Furthermore, Shun Tak explained that this Target Company would combine the existing ferry and coach businesses being operated by Shun Tak and CTII in a joint-venture.
The notice also explains that upon the completion of the restructuring, “the Target Company will be held as to 50% by Interdragon (a non-wholly owned subsidiary of Shun Tak) and 50% by Dalmore (a wholly-owned subsidiary of CTII).”
In the process, China Travel Tours Transportation Development – HK – Limited (CTTT), a subsidiary of CTII and Jointmight Investments Ltd., an indirect wholly-owned subsidiary of Shun Tak will be wholly-owned by the Target Company.
The agreement sets out the acquisition by Dalmore of 21% of the shares of Shun Tak – China Travel Shipping Investments Limited (the operator of TurboJet) for a sum of HKD437 million.
The stock was in the possession of Interdragon, a non-wholly owned subsidiary of Shun Tak Group.
At the same time, Shun Tak – China Travel Shipping Investments Limited will acquire the entire issued share capital of CTTT, the cross-border land transportation service company that operated the Hong Kong-Macau-Zhuhai Bridge Coach and was held by CTII. This acquisition was valued at HKD508 million.
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