HONG KONG--(BUSINESS WIRE)--On June 26, 2015, Alpha Peak Leisure Inc. (TSX-V: AAP) announced the completion of its qualifying transaction via amalgamation and concurrent financing. As a result of the completed transaction, Alpha Peak’s shares resumed trading on July 2, 2015, and closed its first day of trading up 16.67%, with a market capitalization of CAD$135 million.
Following the qualifying transaction, Alpha Peak becomes a member of the Chung Nam Group, led by Mr. Bob Chong, the brother-in-law of Mr. Li Ka Shing, Asia’s Richest Man according to the 2015 Forbes Billionaires List.
Mr. Bob Chong, now Chairman of Alpha Peak, stated, "Today is a tremendous milestone for the Chung Nam Group and Alpha Peak. After more than 9 years of dedication and investment, we are finally ready to unveil our key asset, the Swallows’ Gully national scenic spot, within the public capital markets. I truly believe that Swallows’ Gully, with its unique natural and cultural endowment, will grow into one of China’s most high growth and sought after nature destinations, and we have the best management team to fully capitalize on the asset’s potential.”
Alpha Peak CEO, Mr. Kenneth Poon, added, “This deal gives us access to capital markets to finance the development of Swallows’ Gully into one of China’s premier nature destinations. Alpha Peak has a 3-year execution plan to significantly develop on-site infrastructure and boost profitability. We will leverage marketing partnerships with China travel giants, Tong Cheng International Travel Agency and China Travel Services (308:HK), to further drive not only direct visitation, but the awareness of Swallow’ Gully regionally and nationally. In addition to these partnerships, we expect to work with the local government to achieve 5A national tourism status for the area and underpin the longer-term potential for Swallows’ Gully.”
According to a July 2, 2015 research report from Deutsche Bank on the China domestic tourism sector, China’s domestic tourist volumes have seen a 13% CAGR over the past 10 years, and this growth momentum is expected to continue for another 10 years. The report also initiates coverage on a number of leading natural tourist sites publicly listed in China, each with market capitalization of over CAD$1 billion. The growth potential highlighted by the report positions Swallows’ Gully as a direct beneficiary of China’s massive tourism market in the coming years.
Chinese domestic tourism remains a highly compelling theme. Given the scarcity of high quality scenic sites in China, the highly favorable national and regional policies on infrastructure and tourism, and burgeoning middle class spending, tourist site operators are expected to maintain strong growth momentum over a longer term.
About Alpha Peak
Alpha Peak Leisure Inc. completed its initial public offering on January 31, 2013 and its common shares are listed on the TSX Venture Exchange. Alpha Peak has a 40-year exclusive operating and development right for Swallows’ Gully, a national scenic spot in China encompassing an area of 593km2. Located in the Ganzi Tibetan Autonomous Prefecture in Sichuan and within a cluster of highly frequented tourist destinations that total 5.7 million tourist visitations per annum, Swallows’ Gully is widely recognized as one of the most pristine and beautiful scenic sights in China.