Hong Kong China Travel Service (00308) experienced a 9.80% increase in its share price during early trading, currently quoted at HKD 1.68, with a turnover of HKD 101 million.
Hong Kong China Travel Service announced a proposal to distribute its tourism real estate business in kind. Shareholders may choose to receive one share of a private company for each share held, or a cash payment of HKD 0.336 per share. Upon completion, the company will retain its tourist attractions and related businesses, including theme parks, natural and cultural scenic destinations, and supporting services for tourist sites; travel document-related businesses; as well as hotel and passenger transport operations.
The company stated that after completing the distribution, the group will reduce the drag from non-core assets, with profitability expected to improve. It will further optimize its operating model by concentrating funds and management resources on high-return tourism operations. The board believes that this move is in the best interests of the company and its shareholders.
