LONDON, UK / ACCESSWIRE / January 03, 2018 / Active-Investors.com has just released a free research report on Ctrip.com International Ltd (NASDAQ: CTRP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CTRP as the Company’s latest news hit the wire. On December 29, 2017, the Company announced that two of its investment portfolio companies E-dragon Holdings Limited ("eLong") and Tongcheng Network Technology Co., Ltd ("Tongcheng Network") have agreed to merge. Accordingly, both investment portfolio companies have signed definitive agreements to finalize the merger. The financial details and other terms of the merger were not disclosed. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Ctrip.com International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Highlights of the transaction
On completion of the transaction, the merged Company will be named as Tongcheng-eLong Holdings Ltd (Tongcheng-eLong). The transaction is subject to regulatory approvals and other closing conditions.
Since both eLong and Tongcheng Network offer similar portfolio of travel services and products, the merger will help in resource optimization and lead to greater synergies from operational efficiency. Post the merger, Tongcheng-eLong will continue to offer online travel services via Weixin Wallet and Mobile QQ Wallet. The merged company will be able to offer a comprehensive range of travel products and services to Chinese consumers who are looking to upgrade their lifestyles and travel preferences.
Tencent Holdings Ltd and Ctrip will be the major strategic investors in Tongcheng-eLong. Once the transaction is completed, James Liang, Ctrip's Co-founder and Executive Chairman, and Zhixiang Wu, Co-founder of Tongcheng and Tongcheng Group CEO and Chairman, will be Co-Chairmen of Tongcheng-eLong. Heping Ma, Co-founder of Tongcheng and Tongcheng Network President, and Hao Jiang, CEO of eLong will be the Co-CEOs of Tongcheng-eLong.
Benefits of the deal
eLong is a Chinese mobile and online travel Company that offers its services via eLong.com and eLong.net sites. It allows customers to book hotels, guesthouses, apartments, and other accommodations, air and train tickets and other travel related services using its mobile app as well as its website. Ctrip had acquired its stake in eLong from Expedia in May 2015 and held on to its investment even after eLong became a privately held entity in May 2016.
On the other hand, Tongcheng Network, which operates via LY.com, is a diversified tourism enterprise group with focus on the leisure travel segment. It is one of the leading air and train ticketing as well as tourist spot ticket and liner reservations providers in China. Tongcheng Network has ranked among the Top 20 Tourism Groups of China and was ranked 6th in FY17. Ctrip had invested in Tongcheng Network in April 2014 and has remained an investor in the Company.
The merger of eLong and Tongcheng Network will lead to the formation of a strong new travel Company that is supported by the complementary core strengths of the two online travel brands. The merger will bring together Tongcheng Network's business of bus, air, and train ticketing, hotel booking and eLong's strength in the hotel business. It will also be able to offer a wide gamut of online travel services and products to its customers in China.
The merged Company will also be able to benefit from the traffic from the Tencent's Weixin and Mobile QQ platforms. The merged Company plans to target a large portion of WeChat users as these customers use Tongcheng Network’s access to train tickets and eLong’s access to hotels through WeChat wallet. Ctrip plans to remain invested in Tongcheng-eLong and help it build a strong online presence that promotes better travel experiences while becoming a strong player in China's online travel market.
About Ctrip.com International Ltd
Shanghai, China-based Ctrip was founded in 1999 and is a leading provider of accommodation reservation, transportation ticketing, package tour, and corporate travel management and other travel-related services. The Company conducts substantially all its operations in China. The Company offers its services through an advanced transaction and service platform consisting of its mobile apps, Internet websites, and centralized, toll-free, 24-hour customer service center. The Company has offices in major cities in China as well as in Hong Kong, Taiwan, Japan, Korea, America, Singapore, and Thailand.
Stock Performance Snapshot
January 02, 2018 - At Tuesday’s closing bell, Ctrip.com International’s stock rose 4.47%, ending the trading session at $46.07.
Volume traded for the day: 7.90 million shares, which was above the 3-month average volume of 4.82 million shares.
Stock performance in the last twelve-month period – up 15.17%; and year-to-date - up 4.47%
After yesterday’s close, Ctrip.com International’s market cap was at $24.48 billion.
Price to Earnings (P/E) ratio was at 75.40.
The stock is part of the Services sector, categorized under the Lodging industry. This sector was up 1.7% at the end of the session.
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