Press Room
Increases Equity Stake in GZL
Et-china.com International Holdings Limited, the leading travel services group in the fast growing region of South China, is increasing its equity holding in GZL, its subsidiary which is the largest travel package holiday providers in South China.
Under the executed agreements, five senior executives of GZL are exchanging their entire shareholdings in GZL for shares in Et-china plus cash. For their GZL shares, valued at RMB 10,756,672 (£755,384*), the executives will receive the equivalent of 78% of their worth in Et-china shares with the balance in cash. This will involve the issue of 667,550 new ordinary shares at the average closing price of the last 30 trading days from 5 February 2008 and RMB 2,322,336 (£163,085) in cash.
The 5 key executives represent the management team responsible for the successful development the GZL business over many years including the veteran Chairman and President, Mr. Hong Zheng, Executive Vice President of Operations, Mr. Jianxu Lu and Vice President and Deputy Managing Director of Outbound Travel, Mr. Shaodong Zhu. Their holdings in Et-china will be subject to staged lock-in agreements.
On completion of the deal the Group will increase its holding in GZL by 3.32% to 53.95%. Et-china's recent two trading updates highlighted GZL's rapid growth, increasing its net revenue in the 12 months to 31 December 2007 by 37.64% compared to the 2006 period.
Matthew Ng, President and Chief Executive Officer, commented: "I believe this represents a highly significant move as by swapping their entire holdings in GZL, the business they have built, for shares in the Group, these senior executives as led by Mr Hong Zheng are demonstrating a strong long-term commitment to Et-china and the combined business. "
* Currency in this release is converted on the basis of GB£1 = RMB 14.24
Contact details for enquiries:
| Et-china.com International Holdings Limited | +44 (0)207 067 0700 |
| Matthew Ng, President and Chief Executive Ian Smith, Chairman |
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| Seymour Pierce, Nomad and Broker | +44 (0)207 107 8000 |
| Mark Percy | |
| Weber Shandwick Financial | +44 (0)207 067 0700 |
| Terry Garrett Nick Oborne Stephanie Badjonat John Moriarty |