Banyan Tree Holdings and China Vanke have
established Banyan Tree Assets (China) (BTAC), a 50:50 joint
venture incorporated in Singapore.
BTAC holds a 40% stake in each of Banyan
Tree’s operating companies incorporated in Singapore, Banyan Tree
Hotel Management (China) (BTMC) and Banyan Tree Services (China)
Based on the agreed valuation methodology, Vanke
will (via share subscription):
(1) inject a sum of approximately S$72 million
(subject to post-completion adjustment) into BTAC, in return for
newly issued shares amounting to a 50% stake in BTAC; and
(2) inject a further sum of approximately S$18
million in aggregate into BTMC and BTSC, for Vanke’s effective
stake in BTMC and BTSC.
The illustrative financial effect of the
abovementioned transactions on the net profits attributable to
shareholders of Banyan Tree as reflected in the latest unaudited
financial statements of Banyan Tree for the six months ended 30
June 2017 will amount to approximately S$39 million.
BTAC will be a company with net tangible assets
value of approximately S$100 million, and the intention is for it
to become a sizeable company by acquiring or developing hotels and
resorts in the People’s Republic of China bearing the Banyan Tree
Banyan Tree will also allot and issue new shares
equivalent to approximately 4.99% equity stake in Banyan Tree to
Vanke for an amount of approximately S$24 million, with an
additional issuance and options that will enable Vanke to acquire
in aggregate a 10% equity stake in Banyan Tree.