Shanghai-listed Chinese hotel operator Shanghai Jin Jiang Development Co. Ltd. says it will raise as much as RMB3.035 billion (US$486.7 million) through a private placement of its shares to Hony Capital and its parent company, Shanghai Jin Jiang International Hotels, according to a regulatory filing.
The company will offer 201.277 million A-shares to Hony Capital and its controlling shareholder for RMB15.08 per share, with each party taking 100 million and 101.277 million shares respectively.
After the completion of the transaction, Hony Capital will hold approximately 12.43% of the listed entity, becoming the second largest shareholder. The parent’s stake will remain the same after the deal at 50.32%.
Headed by CEO John Zhao, Hony Capital is one of the largest Chinese private equity firms with US$7.0 billion under management. It is sponsored by Chinese IT firm Legend Holdings Corporation and is founded in 2003.