Dec 8 China’s BTG Hotels Group said it will acquire domestic rival Homeinns Hotel Group for around 11 billion yuan ($1.7 billion), saying that the economy hotel chain will round out its portfolio of brands. State-owned BTG will pay $35.80 in cash for each American depository share of the company, a 19 percent premium to the last ADS closing price on June 10. Homeinns’ ADS jumped 7.3 percent to $34.5 after the announcement. The company, which has started trading on the Nasdaq in October 2006, will be delisted. China’s hotel industry is consolidating amid fierce competition and a slowing economy. Homeinns, which owns 2,787 outlets under five brands, posted a 57 percent drop in net profit in the first nine months of the year. BTG Hotels said it will fund the acquisition through a loan facility of up to $1.2 billion from the Industrial and Commercial Bank of China Ltd. ($1 = 6.4179 Chinese yuan) (Reporting by Clare Jim; Editing by Edwina Gibbs) Read more at Reutershttp://www.reuters.com/article/homeinns-group-btg-hotels-idUSL3N13X1TG20151208#Sh16dMeWmulWj655.99
Source:China’s BTG Hotels to acquire economy hotel chain Homeinns for $1.7 bln
Industry: Hotel 2015-12-08
