Yongan Tourism Sales and Tourism Business Shareholders Dissatisfied with Requesting Special Interest

According to Hong Kong media reports, Yongan Tourism (01189) held an extraordinary shareholders meeting yesterday. The company passed a total of 684 million yuan to sell 90% of its main tourism business to Ctrip.com, and the company will...

According to Hong Kong media reports, Yongan Tourism (01189) held an extraordinary general meeting yesterday. The company passed a total of 684 million yuan to sell 90% of its main tourism business to Ctrip. The company will be renamed as " Rosedale Hotel Holdings". About 30 shareholders expressed dissatisfaction at the meeting and asked the company to issue a special dividend. Yongan executive director Allan Yap said that the company will carefully study the shareholders' requirements.

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Company Chairman Zhang Hanjie did not attend the shareholders meeting. A small shareholder said that Yongan's tourism business has brought profits and cash flow to the company in recent years, and it is questioned that the management will sell the Yongan brand as equivalent to the sale of assets. Chen Ling, the managing director, responded that Ctrip has repeatedly negotiated with the company about the acquisition. The current purchase price is 19 times the price-earnings ratio. "The condition is the best one," and the company retains about 10% of the remaining interest. Continue to bring profit contribution.

When asked about the cash-out use, Allan Yap said it would first pay off the debt due next year, and said the company "has no need to raise funds in the foreseeable future." The management also explained that after the sale of the main business, the company will mainly expand the mainland hotel market, and will work closely with Ctrip in the air ticket and hotel business; Ctrip has verbally promised that it will not cut Yongan tourism staff.

Mr. Chen Zhongxiang, a minority shareholder, said that he hopes that the management can face up to the requirement of shareholders to issue special dividends. It also hopes that the regulators will pay attention to the large-scale grant of listed companies and the practice of diluting the interests of shareholders in the rights issue, and the study of independent non-executive directors to accept board appointments and fees. Whether it is possible to continue to perform the monitoring role. (Tencent Finance)

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