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7 Days Group plans $120 million loan for purchase by Keystone
By Sara Rosenberg
New York, Feb. 28 - 7 Days Group Holdings Ltd. received a commitment for a $120 million loan to help fund its buyout by Keystone Lodging Holdings Ltd., according to a news release.
Cathay United Bank, Chinatrust Commercial Bank Co. Ltd., Nomura International (Hong Kong) Ltd., Ta Chong Bank Ltd. and Taipei Fubon Commercial Bank Co. Ltd. are leading the financing.
Under the agreement, 7 Days Group is being purchased for $4.60 per ordinary share or $13.80 per American Depositary Share. The transaction is valued at about $688 million on a fully diluted basis.
Keystone will be beneficially owned by a consortium comprised of new investors including certain affiliates of Carlyle Asia Partners III LP, Sequoia Capital China Growth 2010 Fund LP and an existing shareholder, an affiliate of Actis LLP, along with other existing shareholders of the company.
Closing is expected during the second half of the year, subject to customary conditions as well as shareholder approval.
7 Days Group is an economy hotel chain based in China.
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