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US regulator extends deadline for Shiji to sell StayNTouch

06/22/2020| 8:30:34 PM| ChinaTravelNews 中文

Chinese hotel tech giant was granted three more months to divest all its interests in the acquisition of a US startup.

Chinese hospitality IT service provider Shiji announced on June 22 that it has acquired permission from US regulator CFIUS to extend the deadline by three months for Shiji to sell its U.S.-based asset StayNTouch, a maker of hotel operational software. 

Shiji said it is currently in final discussions with multiple potential buyers for StayNTouch.

The company acquired 100% shares of StayNTouch in 2018, reportedly for a total price of USD 35 million.

But in March this year, the Trump administration demanded the Chinese hotel tech giant to unwind its acquisition of StayNTouch, citing “threaten to impair the national security of the United States”. Though the Executive Order didn’t explain details of the threat.

According to the Executive Order, Shiji had 120 days to divest all interests in StayNTouch. 

Prior to the extension of the deadline, Shiji needed to sell StayNTouch by July 4, 2020, but after the above-mentioned extension, the deadline is now adjusted to October 2, 2020. 

TAGS: Shiji | CFIUS | StayNTouch
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