Chinese economy chain Homeinns Hotel Group has signed a merger agreement with BTG Hotels Group Holdings Co.
BTG, a subsidiary of the Chinese hotel and tourism giant, will merge with the company for US$17.90 in cash per ordinary share of the company and US$35.80 in cash per American despository share – an 18.7% premium over the closing price on June 10. The rollover shareholders own approximately 35% of the issued and outstanding shares.
Homeinns and BTG Hotels intend to fund the merger through the proceeds from a committed loan facility of up to US$1.2 billion from Industrial & Commercial Bank of China Ltd.