Press Room
Update of Acquisition
On 17 March 2009 Et-china, a leading travel services group in the fast growing region of South China, announced that it had acquired Yoee.com, a Beijing based online travel company via a predominantly script deal. Over the last few months, both management teams have work very closely together to integrate the two businesses. The Company is pleased to announce the integration is progressing well.
Since the acquisition, the combined Et-china FIT business and Yoee.com has seen a 45% increase in net revenue whilst benefiting from the cost savings highlighted at the time of the acquisition with only an 11% increase in the combined operating costs of the combined entity against proforma numbers for the same period last year. The Board believes this demonstrates a strong trend in the growth of the online FIT travel business as a result of the integration and that there is further scope for cost reduction following the integration of the two web-sites, in addition to further staff reduction.
By mid May, the Company had completed or commenced all legal procedures which are required for the ownership and asset transfer to the Company. With the bulk of the legal formality completed, the Company will be issuing up to 2,625,000 shares to the founding management of Yoee.com. These will be issued in two trenches; the first tranche equating to 70% of the total will be issued once the Et-china board has received legal counsel confirmation that the ownership and asset transfer has been completed (which is anticipated to be shortly) with the second tranche equating to the remaining 30% will only be issued following the completion of the 2009 financial year when certain clearly defined integration and performance targets are met. Under the terms of the acquisition, Mr. Justin Xiong, the Founding CEO of Yoee.com, can earn up to a maximum of 2,490,270 Et-china shares on completion of the whole transaction with the close of financial year of 2009.
The Company will be announcing its prelimary results for the year ended 31 December 2008 shortly.
Contact details for enquiries:
| Et-china.com International Holdings Limited | 0207 067 0700 |
| Matthew Ng, Chief Executive Officer | |
| Seymour Pierce, Nominated Adviser and Broker | 0207 107 8000 |
| Mark Percy Catherine Leftley |
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| Weber Shandwick Financial | 0207 067 0700 |
| Terry Garrett Stephanie Badjonat John Moriarty |