HNA Tourism Plans To Invest $500 Mln In Tuniu

(RTTNews) - Tuniu Corp. (TOUR), the china-based online leisure travel company, and HNA Tourism one of three strategic industrial conglomerates of HNA Group, announced that they have entered into a strategic partnership. As part of the partnership, HNA Tourism is expected to invest US$500 million in Tuniu through the acquisition of Tuniu's newly issued Class A ordinary shares.

The purchase price for the transaction will be US$5.50 per Class A ordinary share, or the equivalent of US$16.50 per American Depositary Share ("ADS"). This purchase price represents an approximate 11.3% premium over the average closing trading price of Tuniu's ADSs for the 20 trading days prior to the announcement, and an approximate 5.0% premium over the closing trading price of Tuniu's ADS on November 20, 2015.

Immediately following the completion of the transaction, HNA Tourism is expected to hold approximately 24.1% of Tuniu's total outstanding shares and become Tuniu's largest shareholder.

The transaction is subject to customary closing conditions and is expected to close in December 2015.

As part of this strategic partnership, HNA Tourism and Tuniu have entered into a strategic procurement agreement, pursuant to which HNA Tourism will provide Tuniu with access to its premium airlines and hotels resources at a preferential rate, under fair competitive market rules. Under the strategic procurement agreement, Tuniu is expected to acquire no less than US$100 million in products and services sourced from HNA Tourism over the next two years.