IDG, China Lodging $56M Private Placement In Quanjude Gets Board Approval

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

The deal has been approved by the company’s board, according to a regulatory filing.

IDG Capital Partners and China Lodging Group, a domestic hotel group, will subscribe 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.

The terms are unchanged from the original plan when it was released last October.

Beijing Tourism Group, the biggest shareholder of Quanjude, will see its stake diluted to 42.72% from 46.48% previously.

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

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