A consortium lead by China’s Jin Jiang International said on Tuesday it had made an offer for the entire equity of Radisson Hospitality, valuing the Swedish hotel chain at 7 billion Swedish crowns (USD 774.3 million).
The consortium had already acquired 50.21% stake in the company for 35 Swedish crowns per share.
Tuesday’s cash offer of 40 Swedish crowns per share, represents a premium of about 10% to the stock’s closing price on Monday.
On November 23, 2018, Jin Jiang Hotels Development entered into the Equity Transfer Agreement with Ever Felicitous, Fortune News International and Mr. Party Zheng pursuant to which Jin Jiang Hotels Development shall acquire 3.49825% equity interest in Keystone held in aggregate by Ever Felicitous and Fortune News International for a cash consideration of RMB 351,216,077. Following the completion of the transactions, the percentage of Jin Jiang Hotels Development’s shareholdings in Keystone will increase from 93.0% to 96.5%.
Keystone is an investment holding company principally engaged, through its subsidiaries, in the operation of high- to low-end brands in the market for select service hotels, including mainly economy hotels under the brand of 7 Days and midto up-scale select service hotels.
As of 30 June 2018, Keystone Group had 3,544 hotels in operation providing 290,162 rooms in aggregate and 5,281 hotels for which management agreements had been signed providing 452,763 rooms in aggregate, located in 315 cities in China and elsewhere.
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