03 June 2009

Kuoni snares holding in Chinese travel company

ZURICH - The Kuoni Group has acquired an equity holding of about 32 percent in Et-china.com International Holdings Limited (Et-china).

The holding was previously owned by Gandhara Master Fund Ltd.

The approx US$8.7 million acquisition makes Kuoni the biggest single shareholder in Et-china, one of South China's best-known tour operators through its GZL subsidiary.

The acquisition is a major step in Kuoni's endeavours to substantially expand its activities in the Chinese travel market.

"In acquiring its holding in Et-china, Kuoni is embarking on a key long-term strategic partnership with one of China's most important travel corporations," says Peter Rothwell, CEO of the Kuoni Group.

"This expansion of our activities in China is one of the biggest milestones to date in the more than 100 years of Kuoni's company history."

Founded in Guangzhou in 2000, Et-china today owns a majority stake in Guangzhou International Travel Services (GZL), which specialises in group inclusive-tour arrangements both within China and to destinations abroad.

Et-china also operates a leading Internet platform in China for air tickets, hotel reservations and rental car arrangements for individual travellers.

The company further maintains a joint venture with China Southern Airlines, the country's biggest air carrier, under which it is the sole distributor of the airline's e-tickets.

With some 160 travel agencies, its call centre and its popular Internet portal, Et-china is well positioned within the Chinese travel market.

The company has a customer base of about 1.5 million, and has been listed on London's AIM stock exchange since August 2007.