Chinese budget hotel chain 7 Days Group Holdings Ltd has reached a deal with a consortium of investors led by the Carlyle Group. The consortium finalized the deal with the hotel management group after a bid offer was made amounting to US$688 million.
Many other Chinese companies are delisting themselves from American stock exchanges as more and more regulatory inquiries come about and the advantages of having a US listing have lessened recently.
Amongst the investors in the purchasing consortium are the Carlyle Group, Sequoia Capital, Actis together with the co-chairmen of Chinese companies Boquan He and Nanyan Zheng. The agreement between the members include payment of US$13.80 per 7 Days American Depositary Share, an increased value from US$12.70 or a 30.6% premium over Sept.25 closing share price. Sept 25 was the last full day of trading before the offer to purchase 7 Days was announced.
The budget hotel chain runs limited service hotels across many cities in mainland China. The share values have been halved since 2010.
Join the Conversation