HONG KONG, June 13, 2018 - (Media OutReach) - WWPKG Holdings Company Limited ("WWPKG", together with its subsidiaries, the "Group"; stock code: 8069), a leading travel agent in Hong Kong, announced that on 12 June 2018 the Company as an investor entered into a Cornerstone Investment Agreement with CTEH INC. ("CTEH"), Lego Corporate Finance Limited, Lego Securities Limited and Kingsway Financial Services Group Limited. The maximum aggregate subscription price for the investor shares (excluding brokerage and levies which the Company shall pay in respect of the Investor Shares) payable by the Company under the Cornerstone Investment Agreement shall be HK$10.0 million. The Group believes that the cornerstone investment will provide overseas development opportunity for the Group's business.
CTEH is seeking a listing on the Main Board of the Stock Exchange by way of a Share Offer comprising the (i) Hong Kong Public Offering; and (ii) International Offering. The Cornerstone Investment shall be deemed as part of the International Offering. CTEH is a long-established air ticket consolidator, travel business process management provider and travel products and services provider in Canada. According to the industry report by a renowned industry consultant, CTEH sold approximately 949,000 air tickets in 2017 and ranked top three with a market share of approximately 31.3% in the air ticket consolidation market in Canada, in terms of sales volume of air tickets in 2017. It had ticketing authority for more than 150 airlines and private fare deals with around 70 airlines, as well as a large customer base mainly consisting of more than 850 travel agents in Canada and the United States and travelers.
Mr. Chun Ning YUEN, Chief Executive Officer and Executive Director of WWPKG, said, "WWPKG and CTEH offer complementary advantages to each other on strategic development. The Cornerstone Investment is believed to provide overseas development opportunity for the Group's business."
Investment in Airbare
In addition, the Group completed an acquisition of 20% of the issued share capital of Airbare.com Limited by way of cash consideration of HK$600,000 in May 2018. Airbare.com Limited principally engages in the business of travel metasearch engines, which enables users to (i) search for information on flight tickets from over 800 airlines; (ii) navigate through multiple booking options simultaneously and compare prices; and (iii) direct users to respective service providers to complete the booking process. Airbare has been awarded the "Hong Kong Smart City Summit cum Smart City Awards 2018 - Smart Economy Category", in recognition of its effort to strealine visitors' interactions with the city.
About WWPKG Holdings Company Limited
WWPKG was founded in June 1979. The Group has become one of the long-established and well-known local travel agents, with 39 years of business in the travel service industry in Hong Kong under the brand "*". Its major business includes the provision of outbound package tours with particular focus in Japan bound tours. The Group also offers other travel products and services to customers including free independent traveller (FIT) products and other ancillary travel related products and services.
Currently, the Group sells products and services through a number of channels including four branches in Causeway Bay, Tsim Sha Tsui, Mongkok and Shatin, as well as online sales platform. The Group also sells tailor made tours to customers through MICE tour department, as well as sells travel products to other travel agents in Hong Kong and Macau.
For the year ended 31 March 2018, the Group recorded revenue from package tours of approximately HK$413.9 million, representing an increase of 8.4% as compared to the prior year.
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June 13, 2018 09:30 HKT/SGT
Topic: Press release summary
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