Dallas, Texas 04/28/2014 (FINANCIALSTRENDS) – Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) which is a China based travel accommodation and attendant logistic services provider for the corporate and enterprise sector announced today that it has entered into a stake purchase agreement with Tongcheng Network Technology Share Co., Ltd, thanks to which it would become the second biggest share holding company in Tongcheng Network. The total investment has been pegged at $200 million and was routed through Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) fully owned subsidiary Shanghai Ctrip International Travel Agency Co., Ltd.
Expressing happiness at the completion of the stake purchase, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) Chairman of the Board and Chief Executive Officer Jianzhang Liang has been quoted to have said that, “We are very pleased to establish a strategic relationship with LY.com. We are increasingly positive about the potential of the travel industry in China. LY.com is the leading player in the local attraction ticket segment and we will support the independent operation of LY.com. We are excited to work with LY.com’s team to create greater value for travelers and help the healthy development of the industry.”
Commenting about the infusion of new capital and strategic investment into the company, LY.com which is the online portal owned by Tongcheng Network Chief Executive Officer Zhi Xiang Wu has been quoted to have said that they are thrilled to have a strategic investor who is a market leader in the online and travel logistic markets in the country.
The stock of Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) has been under pressure to post gains at the stock market over the past week. It has lost nearly 13 percent of its market valuation during in the above time frame, in spite of receiving favourable coverage by rating agency Aegis Capital. It initiated coverage on the stock at $60 per share.