Homeinns recieves proposal for privatization from Ctrip led buyer group
Homeinns received a non-binding proposal letter for privatization from BTG Hotels, Poly Victory Investments, Ctrip's Neil Shen, James Liang and David Sun dated June 11.
Homeinns Hotel Group, a leading economy hotel chain in China, today announced that its Board of Directors has received a non-binding proposal letter from BTG Hotels, Poly Victory Investments, Ctrip's Neil Shen, James Liang and David Sun dated June 11, 2015 proposing a "going-private" transaction to acquire all of the outstanding ordinary shares of Homeinns not already owned by the aforementioned buyer group.
The buyer group already owns an aggregate of approximately 35% of all of Homeinn's issued and outstanding ordinary shares.
The transaction would be for US$32.81 in cash per American depositary share which represents a premium of 20% to the average closing trading price of the Company's ADSs during the past 20 trading days.
According to the proposal letter, the buyer group intends to fund the consideration payment in the transaction with a combination of debt and/or equity capital, and rollover equity in Homeinns.
Homeinn's board has formed a special committee comprised of three independent, disinterested directors, Messrs.Kenneth Gaw, Terry Yongmin Hu and Arthur M. Wang. The special committee plans to retain legal and financial advisors to assist it in evaluating the Transaction.
The board cautions Homeinn's shareholders and others considering trading in its securities that the board just received the non-binding proposal letter from the buyer group and no decisions have been made with respect to the it's response to the transaction.
There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.
Homeinns does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
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