{"id":644686,"date":"2013-03-01T06:42:47","date_gmt":"2013-03-01T11:42:47","guid":{"rendered":"http:\/\/www.pehub.com\/?p=188821"},"modified":"2013-03-01T06:42:47","modified_gmt":"2013-03-01T11:42:47","slug":"carlyle-consortium-agrees-to-7-days-deal-for-688m","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/644686","title":{"rendered":"Carlyle Consortium Agrees to 7 Days Deal for $688M"},"content":{"rendered":"

(Reuters) – A consortium led by Carlyle Group<\/strong> and company management has reached a deal to take Chinese economy hotel chain 7 Days Group Holdings Ltd<\/strong> private, after raising its bid by 9 percent to $688 million.<\/p>\n

Chinese companies like 7 Days are delisting from U.S. bourses in increasing numbers as regulatory scrutiny mounts and the advantages of a U.S. listing slip away.<\/p>\n

The consortium backing the 7 Days deal — Carlyle Group, Sequoia Capital, Actis and the co-chairmen of the company Boquan He and Nanyan Zheng — initially approached the company last September.<\/p>\n

They have now agreed to pay $13.80 for each 7 Days American Depositary Share (ADS), up from $12.70 previously, a 30.6 percent premium over the Sep. 25 closing price, the last full trading day before the original offer was announced.<\/p>\n

7 Days, which runs limited-service hotels under the 7 Days Inn brand across major metropolitan areas in China, had lost half its value since 2010 before receiving the go-private offer.<\/p>\n

Almost $5 billion of private equity-backed deals to take China companies private have been agreed since late December, including the $3.7 billion leveraged buyout of display advertising firm Focus Media Holding Ltd, a target of shortseller Muddy Waters.<\/p>\n

Private equity firms are backers on many of the bigger take-private deals, working with company management to take advantage of big discounts to peers on the Hong Kong and China stock markets.<\/p>\n

Out of 40 announced deals since 2010, 18 are private equity backed, according to data compiled by Thomson Reuters.<\/p>\n

Funding for buyouts of Chinese companies is done through offshore holding companies but many banks will not finance such deals due to the risk of non-payment. Limited financing has restricted deal sizes, and increases the amount of equity that private equity firms must invest.<\/p>\n

The 7 Days buyout is backed by a leveraged loan of $120 million, or around 17 percent of the deal value, from a consortium of mainly Taiwanese banks. Typical recent leveraged buyouts in Asia feature around 50 percent in leveraged debt.<\/p>\n

(Reporting by Stephen Aldred; Editing by Richard Pullin)
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(Reuters) – A consortium led by Carlyle Group and company management has reached a deal to take Chinese economy hotel chain 7 Days Group Holdings Ltd private, after raising its bid by 9 percent to $688 million. Chinese companies like 7 Days are delisting from U.S. bourses in increasing numbers as regulatory scrutiny mounts and […]<\/p>\n","protected":false},"author":7428,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-644686","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/644686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7428"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=644686"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/644686\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=644686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=644686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=644686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}