Update of Yoee.com Acquisition


 

TIDMETC 
 
RNS Number : 8001S 
Et-china.com International Holdings 
26 May 2009 
 

   26 May 2009 
 
 
 
 
ET-CHINA.COM INTERNATIONAL HOLDINGS LIMITED 
("Et-china", "the Group" or "the Company") 
 
 
Update of Acquisition 
 
 
On 17 March 2009 Et-china, a leading travel services group in the fast growing 
region of South China, announced that it had acquired Yoee.com, a Beijing based 
online travel company via a predominantly script deal. Over the last few months, 
both management teams have work very closely together to integrate the two 
businesses. The Company is pleased to announce the integration is progressing 
well. 
 
 
Since the acquisition, the combined Et-china FIT business and Yoee.com has seen 
a 45% increase in net revenue whilst benefiting from the cost 
savings highlighted at the time of the acquisition with only an 11% increase in 
the combined operating costs of the combined entity against proforma numbers for 
 the same period last year. The Board believes this demonstrates a strong trend 
in the growth of the online FIT travel business as a result of the integration 
and that there is further scope for cost reduction following the integration of 
the two web-sites, in addition to further staff reduction. 
 
 
By mid May, the Company had completed or commenced all legal procedures which 
are required for the ownership and asset transfer to the Company. With the bulk 
of the legal formality completed, the Company will be issuing up to 2,625,000 
shares to the founding management of Yoee.com. These will be issued in two 
trenches; the first tranche equating to 70% of the total will be issued once the 
Et-china board has received legal counsel confirmation that the ownership and 
asset transfer has been completed (which is anticipated to be shortly) with the 
second tranche equating to the remaining 30% will only be issued following the 
completion of the 2009 financial year when certain clearly defined integration 
and performance targets are met.  Under the terms of the acquisition, Mr. Justin 
Xiong, the Founding CEO of Yoee.com, can earn up to a maximum of 2,490,270 
Et-china shares on completion of the whole transaction with the close of 
financial year of 2009. 
 
 
The Company will be announcing its prelimary results for the year ended 31 
December 2008 shortly. 
 
 
 
 
Contact details for enquiries: 
 
 
+-------------------------------------+------------------------------------+ 
| Et-china.com International Holdings |                      0207 067 0700 | 
| Limited                             |                                    | 
+-------------------------------------+------------------------------------+ 
| Matthew Ng, Chief Executive Officer |                                    | 
+-------------------------------------+------------------------------------+ 
|                                     |                                    | 
+-------------------------------------+------------------------------------+ 
| Seymour Pierce, Nomad and Broker    |                      0207 107 8000 | 
+-------------------------------------+------------------------------------+ 
| Mark Percy                          |                                    | 
| Catherine Leftley                   |                                    | 
+-------------------------------------+------------------------------------+ 
|                                     |                                    | 
+-------------------------------------+------------------------------------+ 
| Weber Shandwick Financial           |                      0207 067 0700 | 
+-------------------------------------+------------------------------------+ 
| Terry Garrett                       |                                    | 
+-------------------------------------+------------------------------------+ 
| Stephanie Badjonat                  |                                    | 
+-------------------------------------+------------------------------------+ 
| John Moriarty                       |                                    | 
+-------------------------------------+------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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