IDG Capital and China Lodging Invest $56M In Quanjude

Beijing-based Chinese catering chain Quanjude says the company will raise a total of RMB350 million ($56 million) by offering 24.95 million ordinary shares through a private placement.

IDG Capital Partners and China Lodging Group, a domestic hotel group, will buy the new shares of the Shen Zhen Stock Exchange-listed Quanjude.

IDG will purchase 17.8 million of the shares for RMB250 million, holding a 5.78% stake after closing.

China Lodging will buy 7.1276 million shares for RMB100 million, which will give it a 2.3% stake.

Both investors are subject to a 36-month lock-up period.

Beijing Tourism Group, the biggest shareholder of Quanjude, has reduced its stake to 42.72% from previous 46.48%.

The net proceeds will be used for six projects, including the construction of a central kitchen and restaurant network.

The transaction is expected to close within the next six months.

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