Banyan Tree unit sells 18.6% stake in JV with China Vanke to JV partner for S$78.6m

A UNIT of resort operator Banyan Tree Holdings plans to sell 18.6 per cent of its stake in a joint venture (JV) with China Vanke, Banyan Tree Assets (China) Holdings (BTAC), to China Vanke for S$78.6 million.

BTAC is a JV company formed between Banyan Tree Holdings and Vanke for holding mainly all of the hotels and real estate assets of the JV in China.

The stake was sold through its unit, Banyan Tree China (BTC), which had owned 22.8 per cent of the shareholding in BTAC prior to the proposed sale. This transaction brings BTC's stake in BTAC to 4.2 per cent. BTC has the further right to sell nearly all - that is, up to 99 per cent - of the remaining shareholding in BTAC in or after eight years.

Shares of Banyan Tree closed unchanged at S$0.51 on Wednesday.