Kuoni pulls out of China deal

Monday, 21 Dec, 2010 0

Kuoni has pulled out of a deal to buy extra shares in a Chinese company after complications arose.

In a statement today, it said a recommended cash offer for Et-china.com International Holdings will not be completed

“Certain conditions to the corresponding ‘Scheme of Arrangement’ will not have been satisfied, and will not be waived by such time as to enable the ‘Scheme’ to become effective by the Long Stop Date of 31 December 2010,” it said.

“Kuoni is not willing to agree to a further extension of the Long Stop Date for the ‘Scheme’. In September 2010 the Long Stop Date was already extended to the end of 2010.”

Kuoni remains the largest shareholder in Et-china.com International Holdings with an equity stake of around 29%.

The group’s statement said it continues to participate in the growth of the Chinese market and that its acquisition strategy in Asia continues unchanged.

By Bev Fearis

Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.