BANYAN Tree : B58 0% will go separate ways with the subsidiaries of China’s second-largest developer by sales, China Vanke, with both parties buying out each other’s stakes in their joint ventures (JVs).

In a filing to the Singapore Exchange on Friday (Dec 8), Banyan Tree made the announcement that would involve Banyan Tree acquiring the shares of two JVs for 480 million yuan (S$90.2 million) from China Vanke units and selling its shares in another JV for 30 million yuan.

Banyan Tree will pay 425 million yuan out of the full sum in cash using internal resources, while the remaining amount is to be offset against the proceeds from its sale of stakes in the third JV, as well as receivables.

The transactions, said Banyan Tree, will enable it to streamline strategic decision-making in response to market dynamics and enhance operational efficiency in day-to-day operations.

“The divestment of the hotel ownership component is in line with the company’s asset-light strategy,” it added.

The hotel management player’s subsidiaries Banyan Tree Services and Banyan Tree China on Friday entered into a term sheet to acquire all of the stakes owned by two China Vanke units –Tritonia Company and China Voyage – in Banyan Tree Services (China) and Banyan Tree Hotel Management (China).

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Banyan Tree Services (China) and Banyan Tree Hotel Management (China) are JVs of Banyan Tree and the two China Vanke units, providing hotel management and other ancillary services in China.

Meanwhile, Tritonia will acquire all of Banyan Tree China’s 5.2 per cent interest in Banyan Tree Assets (China) Holdings – a JV entity that owns hotels in China.

The existing shareholders of Banyan Tree Services (China) are Banyan Tree Assets (China) Holdings (40 per cent), Banyan Tree Businesses (40 per cent) and China Voyage (20 per cent).

The existing shareholders of Banyan Tree Hotel Management (China) are Banyan Tree Services (40 per cent), Banyan Tree Assets (China) Holdings (40 per cent) and China Voyage (20 per cent).

Also, Banyan Tree Assets (China) Holdings will acquire all of the equity in property management services provider Chengdu Laguna Property Services from Banyan Tree Hotels Management (Beijing).

The stakes in Banyan Tree Hotels Management (Tianjin) will also be bought out by Banyan Tree entities.

Following these moves, the China Vanke subsidiaries and Banyan Tree will cease to be JV partners.

Banyan Tree shares closed unchanged at S$0.36 on Friday, before the announcement.