Banyan Tree Holdings B58 has announced that its subsidiaries Banyan Tree Services and Banyan Tree China have acquired all of China Vanke’s affiliates’ interest in their joint ventures (JVs) Banyan Tree Services (China) and Banyan Tree Hotel Management (China) on Dec 29.
The aggregate consideration for the transaction came to RMB480 million ($91.5 million), and will be partially offset by China Vanke subsidiary Tritonia Company’s acquisition of all of Banyan Tree China’s interest in Banyan Tree Assets (China) Holdings, a separate JV entity which owns hotels in China.
As part of the term sheet, the equity interest in Banyan Tree Hotels Management (Tianjin) held by Tianjin Wanrong Enterprise Management, an indirect wholly-owned subsidiary of Banyan Tree Assets (China) will also be acquired by the Banyan Tree subsidiaries.
Meanwhile, Banyan Tree Assets (China) will acquire all of the equity interest in Chengdu Laguna Property Services from Banyan Tree Hotels Management (Beijing), a wholly-owned subsidiary of Banyan Tree Services (China).
Following the transaction, Banyan Tree and China Vanke subsidiaries Tritonia and China Voyage have ceased to be JV partners for the three JV companies.
Banyan Tree will fund the cash component of the aggregate consideration, which amounts to RMB425 million, through its internal resources.
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Shares in Banyan Tree closed 0.5 cents higher or 1.47% up at 34.5 cents on Dec 29.
