BTG Hotels (Group) Co., Ltd. (600258.SH) announced late on Monday that it would acquire 100 percent stake in Homeinns Co., Ltd. (HMIN.NASDAQ) with direct or indirect shareholding for about 11.05 billion yuan and it will raise up to 3.87 billion yuan through private placement.
The documents need to be reviewed by the Shanghai Stock Exchange and shares of BTG Hotels will continue to suspend trading.
BTG Hotels will pay cash to small shareholders of Homeinns through an overseas subsidiary to purchase 65.13 percent shareholdings and privatize the hotel chain. The transaction price would be 7.178 billion yuan (11.24 U.S. dollars), or 17.90 dollars per common share, or 35.80 dollar per American Depository Share (ADS), as each ADS of Homeinns contains two common shares.
Moreover, BTG Hotels will issue 247 million shares at 15.69 yuan per share to raise 3.87 billion yuan to purchase another 19.60 percent stake of Homeinns as well as 100 percent shareholding of Poly Victory, which holds 15.27 percent of Homeinns' shares.
Homeinns' total assets amounted 9.618 billion yuan by the end of the third quarter of 2015 and its net income for 2013, 2014 and 2015 stood at 196 million yuan, 519 million yuan and 185 million yuan, respectively.
BTG Hotels also said Homeinns will be de-listed from the Nasdaq and return to China's A-share market.
Latest comments