CHINA. The Board of Directors of China Tourism Group CDFG Co (CTG), the parent company of China Duty Free Group, unanimously voted today to invest in China National Service Corporation (CNSC), a subsidiary of Sinopharm, which operates a diverse array of airport, downtown and land border duty free stores in Mainland China (including in Sanya, Hainan province).
The CTG Board agreed that the company will invest RMB1.228 billion (US$178.5 million) in the form of a non-public agreement (the relevant pricing is based on a filing by the State-owned Assets Supervision and Administration Commission of the State Council/SASAC) to participate in a CNSC capital increase.
After the completion of this transaction, the company will hold 49% equity in CNSC (this will not be included in the scope of the company’s consolidated statements).
More details to follow on the signing ceremony tomorrow morning China time, plus exclusive reaction from Sinopharm and CNSC. ✈
