As part of the term sheet, the equity interest in Banyan Tree Hotels Management (Tianjin) held by Tianjin Wanrong Enterprise Management, an indirect wholly-owned subsidiary of Banyan Tree Assets (China) will also be acquired by the Banyan Tree subsidiaries.
Meanwhile, Banyan Tree Assets (China) will acquire all of the equity interest in Chengdu Laguna Property Services from Banyan Tree Hotels Management (Beijing), a wholly-owned subsidiary of Banyan Tree Services (China).
Following the transaction, Banyan Tree and China Vanke subsidiaries Tritonia and China Voyage have ceased to be JV partners for the three JV companies.
Banyan Tree will fund the cash component of the aggregate consideration, which amounts to RMB425 million, through its internal resources.
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Shares in Banyan Tree closed 0.5 cents higher or 1.47% up at 34.5 cents on Dec 29.
