Hong Kong China Travel Service (00308.HK) announced that, in order to achieve the professional development of its core business, it proposes a distribution-in-kind of its tourism real estate operations. Shareholders may opt to receive one share of a private company for each share held, or a cash payment of HKD 0.336 per share. The proposed distribution is expected to result in a loss of approximately HKD 160 million, primarily due to the reclassification of accumulated foreign exchange differences related to the tourism real estate operations.
The company will internally restructure its tourism real estate operations, which will be held and managed by a newly formed private company group. This will be achieved through an in-kind distribution of shares in the private company, thereby spinning off the private company group from the main group. Upon completion, the company will retain its tourism attractions and related businesses, including theme parks, natural and cultural scenic destinations, and ancillary services for tourist attractions; travel document-related services; as well as hotel and passenger transport operations.
