Tongcheng Denies Rumor of Merger with eLong
Tencent Tech, 4/13/17
Suzhou-based online travel service provider Tongcheng Network Technology (Tongcheng Travel) today denied recent rumors that it plans to merge with Chinese online travel service provider eLong and list on one of China's domestic A-shares stock exchanges, and said that it will give an update regarding its capital operations in the near future.
Tongcheng also said that it has successfully completed all business registration formalities related to the division of its travel operations into two separate businesses, Tongcheng Travel and Tongcheng International Travel Service. After the reorganization is completed Tongcheng plans to complete capital market listings for both companies through separate IPOs.
Last October, Tongcheng's senior management completed a RMB 1 bln capital increase with the support of the company's shareholders, including entertainment conglomerate Dalian Wanda Group, online travel service provider Ctrip (Nasdaq: CTRP), and internet and mobile services firm Tencent (0700.HK).
Editor's Note: Tongcheng, in its response to this rumor today, also said that it would not merge with Tuniu Technology (Nasdaq: TOUR), operator of Chinese online travel site Tuniu.com. Previously, in late 2015, Chinese news media reported rumors that Tongcheng would merge with Tuniu. For more information on Tongcheng splitting its business into two operating segments, please see "Tongcheng Travel Splits Business into Two Operating Segments," MD 6/17/16 issue, and Tuniu, Tongcheng Deny Merger Rumors, MD 11/17/15 issue.
Keywords: IPO Internet eLong online travel Tongcheng Network Tongcheng International Travel Service A-share M&A
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