(Yicai Global) June 6 -- Domestic theme park leader and real estate developer Shenzhen Overseas Chinese Town will invest CNY2 billion (USD312.5 million) in Tongcheng Tourm Group, one of China's major online travel service companies. The parties will bring into play the synergtic effects of their offline resources and online big data in their cooperation.>
The investment from the large-scale central enterpre OCT in Tongcheng Tourm Group will not only confer commercial complementarity but may also hasten Tongcheng Tourm Group's lting, and perhaps help it prepare for the withdrawal of early investors such as Wanda Group, an insider told Yicai Global.
"The investment of the central SOE will make Tongcheng stronger, and entertainment projects of OCT such as the theme parks around the world will also find a place for Tongcheng Tourm as well," said Zhao Huanyan, economt and chief information officer for Huamei Consulting.
"For OCT, th also a diversified investment related to the upstream and downstream industry chains. After investing in Tongcheng Tourm, th traditional enterpre can also enhance its overall business position both online and offline at the same time," Zhao added.
The cooperation with OCT was intended to build a new future-oriented tourm eco-platform, giving full play to the cooperation and syncretm among various sectors, Tongcheng Tourm said.
"In fact, Tongcheng Tourm Group and its subsidiaries have always been striving for lting, and there have been a lot of rumors at the time, but there no accurate news afterwards," explained Wei Changren, chief analyst with Jinlu Consulting. Current Tongcheng shareholders such as Wanda Group are mulling a pull-out. OCT taking business away from exting shareholders by investing in Tongcheng Tourm, Wei said.
Editor: Ben Armour