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News Release


Announcement of Acquisitions And Realisations Of Assets

ACQUISITION OF ADDITIONAL EQUITY INTEREST IN LIJIANG BANYAN TREE HOTEL CO., LTD



The Board of Directors of Banyan Tree Holdings Limited ("BTH/Company") wishes to announce that the Company has increased its direct equity interest in Lijiang Banyan Tree Hotel Co., Ltd ("LBTH") from 30% to 50.96% (the "Acquisition") by acquiring an additional 20.96% equity interest in LBTH from Laguna Banyan Tree Limited ("LBT") which is a wholly-owned subsidiary of Laguna Resorts Hotels Public Company Limited ("LRH"). There is no change in the Company's deemed equity interest in LBTH as the remaining 49.04% in LBTH continues to be held by LBT. LRH is a public company listed on the Stock Exchange of Thailand ("SET") of which BTH Group holds 52% interest. A copy of LRH's announcement to SET released contemporaneously with the release of this announcement, is attached.


LBTH, which was incorporated in the People's Republic of China ("PRC") has a fully paid-up registered capital of US$14,900,000.


The consideration for the Acquisition at US$2,857,005 was arrived at on a willing buyer-willing seller basis by taking into account the net book value of LBTH's unaudited financial statement as at 30 September 2006 of which 20.96% of the net book value of LBTH is approximately US$2,708,344.


The settlement of the consideration will be satisfied in full by assigning BTH's existing loan receivable due from LBTH to LBT.


The Company has identified the PRC as a key market for its core businesses and intends to commit more resources to growing its PRC business. In line with this strategy, the Acquisition allows BTH to gain more direct control over LBTH.



  • By Order of the Board
  • Jane Teah
  • Group Company Secretary
  • 29 December 2006


  • DBS Bank Ltd and UBS AG, acting through its business group, UBS Investment Bank, were the joint global co-ordinators and bookrunners of the initial public offering of the shares in Banyan Tree Holdings Limited.



    Attachments


  • LRH_PartialDivestmentLijiang29Dec06.pdf (Size: 124,278 bytes)

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