China Telecom Corporation has put a 30% share of its wholly owned subsidiary Tongmao Hotel Holding Company Limited on sale for CNY730 million.
The Tongmao Hotel Holding Company Limited with a registered capital of CNY1.77 billion wholly owns, or holds shares in, 11 hotels around China, each of which exists as a separate legal entity. These 11 hotels are located in major first- and second-tier cities in seven provinces and include two five-star, six four-star, and three three-star hotels — with a total of 2,456 rooms. As of March 31, 2008, the company's total assets were CNY2.44 billion.
China Telecom says that the intending investor must have experience in hotel investment and management and have a desire for a long-term operation. The purchaser is required to put up an additional investment of at least CNY908 million in cash when it acquires shares in the hotel company.
After the acquisition and investment enhancement are accomplished, China Telecom will remain the controlling shareholder of Tongmao Hotel Holding Company Limited, holding 51% of its shares and the purchaset will hold the balance of 49%.