Rakuten sells stake in Ctrip.com

Rakuten Inc. has announced the sale of its entire 20.3% stake in China's Ctrip.com International Ltd., Bloomberg reported.

Rakuten is Japan's biggest retailer. The company said yesterday in a filing to the U.S. Securities Exchange Commission that it will be selling 13.29 million American Depositary Shares, Ctrip, which belongs to China's biggest online ticketing agent.

Two ADRs represent one Ctrip.com share, the report said.

At closing yesterday, one Ctrip.com share was priced at US$43.28, valuing the sale at a total of US$575 million. However, the pricing for the sale has not been confirmed, and the price will only be announced Aug. 10, Rakuten said.

Rakuten Inc. is headquartered in Tokyo, Japan. With six business segments, the company is engaged in the e-commerce, credit payment, portal media, travel, and securities and sports businesses. Rakuten was the largest shareholder in Ctrip.com. It posted an 86% drop in profit in 2006, and the gain from the sale will be added to this year's consolidated earnings.

Ctrip.Com International Ltd. is the largest online ticketing agent in China. The company consolidates hotels accommodations and flight information in China, enabling customers to make hotel and flight bookings. Ctrip.com also sells packaged tours with transport and accommodations.