Chinese real estate and investment company Zhonghong Group has closed the deal of acquiring 90.5% stake in the luxury travel firm Abercrombie & Kent (A&K) for USD 412 million in cash through its overseas unit Neo Dynasty. The completion of the deal was announced by the company on October 10.
Real estate media Guandian reported that the acquisition was carried out in two phases. The first step, completed in September 2016, involved Zhonghong acquiring 90.5% stake in A&K from the subsidiaries and relative parties of A&K’s former parent U.S. hedge fund manager Fortress Investment Group, through Yan Zhao Global Limited.
The transaction was completed after the acquired 90.5% stake in A&K was transferred from Yan Zhao to Zhonghong’s overseas subsidiary Neo Dynasty in a cash deal.
The deal involving Neo Dynasty, Yan Zhao, Ocean Sound and A&K was laid out in a stock purchase and sale agreement signed on May 7 this year.
Following the latest cash transaction between Neo Dynasty and Yan Zhao, Zhonghong’s acquisition of A&K is completed, according to the group’s announcement.
The transaction is worth USD 412.49 million. Luxembourg-based A&K operates tourism management and tourism services through its subsidiaries.
The Zhonghong Group will venture into high-end tourism business through the A&K deal, having built its business on cultural tourism and real estate business.
Yan Zhao is registered in the British Virgin Islands. Its shareholders are RRJ Capital and a subsidiary of China Huarong.