Joy City Property Ltd. subsidiaries Rich Harbour Enterprises Ltd. and COFCO (BVI) No. 17 Ltd. are selling their entire equity interest in COFCO Hotel (Beijing) Co. Ltd. to Tianfu Fund Management Co. Ltd. for roughly 1.36 billion yuan.
The units carried out the disposal through a public sale on the Shanghai Equity Exchange. Under the deal, Tianfu will repay approximately 622.7 million yuan of loans that COFCO Hotel owes to the Joy City group, along with a shareholders loan of about 895,600 yuan. The loans will be paid on top of the consideration price, taking the deal's total to 1.98 billion yuan.
As at Dec. 8, Rich Harbour owned 65% of COFCO Hotel and COFCO (BVI) owned the rest. The hotel company engages in investments and the management of the W Hotel Beijing Chang'an in China. The 22-level hotel property sits on a roughly 6,746.29-square-meter site. Its gross floor area measures 62,805 square meters with 349 guest rooms, facilities for catering and conference, as well as car parks.
The Joy City group expects to record a gain of approximately 982.9 million yuan from the deal, which it intends to use as general working capital.
As of Dec. 8, US$1 was equivalent to 6.62 yuan.
