Ctrp.com (CTRP) Completes Share Exchange, Stock Soars
Shares of Ctrp.com International Ltd. (CTRP) were trading up +16.18 or +21.76 percent to $90.52 per share in Monday’s premarket after the company announced early this morning that it had completed a share exchange transaction with Baidu Inc. (BIDU) for Qunar Cayman Islands Limited (QUNR). Ctrp.com stock closed at $74.34 per share, up +1.95 or +2.69 percent in Friday’s regular trading session.
Shanghai, China based Ctrp, which owns Ctrp.com International Ltd. was founded in 1999 by James Liang and three associates.
The share exchange had Baidu, Inc. exchange 178,702,519 of Qunar Cayman Islands Limited Class A ordinary shares, and 11,450,000 Class B ordinary shares, which were beneficially owned by Baidu Inc. before the consummation of the transaction in exchange for 11,488,381 newly issued ordinary shares of Ctrip. The exchange ratio for the deal is 0.725 Ctrip ADSs per Qunar ADS.
After the transaction, Baidu Inc. will own approximately 25 percent of Ctrip’s aggregate voting interest, while Ctrip will own ordinary stock representing about 45 percent of Qunar’s aggregate voting interest. A total of four representatives, including James Liang, CEO and Jane Sun, co-president and Chief Operating Officer of Ctrip will be appointed to Qunar’s board of directors, while Chairman and Chief Executive of Baidu, Robin Li and vice president and head of investments, Tony Yip will be appointed to Ctrip’s board of directors.
James Liang, co-founder, Chairman of the Board and Chief Executive Officer of Ctrip said in the company’s announcement that, “We are excited by this transaction, which we believe will help build a healthy travel ecosystem in China. This milestone transaction will enable us to focus on providing the best travel products and services to our travelers. We believe this will create greater value to our customers, partners and shareholders in the future.”
CC Zhuang, co-founder and Chief Executive Officer of Qunar noted that, “China travel is an industry with great potential. As the technology leading player in the industry, Qunar has become China's fourth largest e-commerce company with tremendous growth momentum. We are very proud of our team, and appreciate the support from our global shareholder base.”
In addition to the share exchange, Baidu and Ctrip also said that they had agreed to a business cooperation where the two companies would offer a wide range of products and services. Baidu will continue with its existing business dealings with Qunar.
Investors and the market have voted with confidence on the share exchange, driving Ctrip stock up well above its yearly high of $87.62 per share in this morning’s premarket. Baidu Inc. stock is trading up more than seven percent, while Qunar stock is up more than +25 percent.
Other News About CTRP
Ctrip.com Expected To Dodge Dip In China Air Travel
Analyst says Chinese online travel agencies have so far not been impacted by the slowdown.
Ctrip.com International Ltd. Earnings Q2, 2015
Company announced net earnings of $23.03 million or $0.14 per share for their second quarter.
Other Stocks in the News
Xerox revenue misses Street; says to review operations
Company announced it will undertake a “comprehensive review of structural operations”.
Piedmont Natural Gas agrees to $4.9 billion buyout by Duke; shares rise
Piedmont stock was up almost nine percent in this morning’s premarket.