Ctrip, a leading online travel agent in China, announced that wholly-owned subsidiary C-Travel International had signed an agreement with Wing On Travel to acquire the latter’s tourism business for $89.4 million.
The earnings from the sale are expected to be around $59.5 million. Wing On Travel said it planned to use $10 million to acquire a four-star hotel, $19.2 million to develop a leasing business and acquire another hotel, $26 million to repay bank loans and $4.16 million to replenish working capital, according to an earlier report from China Knowledge.
Alibaba reported last year Wing On Travel suffered a net loss of $46 million. Operating revenue from tourism declined 12% year on year.
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