Priceline is putting itself into position to get into acquisition mode, and in China, Ctrip is doing likewise.
Will 2010 be a year for lots of travel company mergers? Perhaps the year is shaping up that way.
Ctrip, a leader in the selling of air, hotel and vacation packages in China, revealed a public offering of 5.7 million American Depository Shares, which could bring the company net proceeds of nearly $200 million.
“We intend to use the net proceeds from this offering for strategic acquisitions of, and investments in, complementary businesses and assets, and for other general corporate purposes,” Ctrip states.
Ctrip’s eyeing of new acquisitions follows its announcement last month that it intend to buy 90% of the shares of a Hong Kong-based travel agency, Wing On Travel.
Ctrip says it is the largest hotel and airline consolidator in China.
Two-thirds of its transactions are consummated over the phone and about one-third online.
Related posts:
- Ctrip to buy 90% of Hong Kong agency to improve position in Greater China
- Express checkout: Hyatt IPO proceeds to go missing
- Are Priceline, Expedia battling over acquisition warchests?
- Western online travel firms need to think differently when they come to China
- Expedia’s world view: Choice Hotels, China, agency model in Europe, TripAdvisor
I believe Wing On is based in HKG, not Shnaghai. Crip has ben acquiring assets to build on it’s greater China position with EZ Travel in TWN mid last year, and Wing On in HKG this year.
Brett: You are totally correct. It is based in Hong Kong. My bad. I will fix it. Thanks for pointing it out.