BEIJING: Tuniu Corp, one of China’s online tourism giants, said yesterday that it has accepted a US$500 million investment from HNA Tourism Group, China’s sixth-largest tourism company.
The transaction was the latest merger and acquisition in the Chinese online tourism sector after Ctrip and Qunar announced a tie-up via a share swap last month.
HNA Tourism, a subsidiary of HNA Group which is owned by the Hainan provincial government and overseas investors, is expected to take around 24.1 percent in Tuniu. The transaction is subject to customary closing conditions and is likely to close in December.
“HNA Tourism’s airline resources will significantly enhance our ability to connect our network of departure cities to our constantly growing portfolio of destination offerings,” Donald Yu, Tuniu’s co-founder, chairman and CEO, said in a statement.
Tuniu is set to source no less than US$100 million in products and services from HNA Tourism over the next two years, both sides said.
China’s economic transformation focusing on consumption and rising purchasing power are set to boost the Chinese tourism market and fuel competition, industry insiders said.
Chinese tourists spent US$164.8 billion in 2014, a fourfold jump from 2008, said Xinhua news agency, citing China Tourism Academy.
