Jane Chen / Shanghai Daily news
China International Travel Service and China Duty Free Group, two key arms of
CITS Group Co, are transferring part of their subsidiary companies to their
parent, in preparation for separate overseas share-floats reportedly planned for
October, Xinhua News Agency cited a close source to the companies as saying
Starting from November 2006, CITS and Duty Free Group have discussed the
asset split involving 52 of its subordinate firms.
State-owned Assets Supervision and Administration Commission has initiated
the move, according to an industry insider cited in the Xinhua report.
"The commission hopes the best quality assets will remain by CITS and Duty
Free Group after the one-year split program, so that their overseas share-floats
will become smoother," the insider said. He added that the two companies
may be listed in Hong Kong or other overseas markets.
A CITS official declined to confirm the listing plan yesterday.
Du Ping, an official with CITSí»s marketing department, described it as
inconvenience to be interviewed as the company's general managers were not in
"Besides, the restructuring program is not yet decided and it's inappropriate
for the company to comment now", he added.
Despite that, analysts regard the assets splitting program very likely,
citing CITS general manager Yao Yuecan, who had indicated a possible company
restructuring two months ago.
"The company will consider absorbing good assets of its 50 local travel
agencies to improve the corporative structure," he said last November during
China International Travel Mart.