Chinese hotel chain 7 Days Group Holdings Ltd. (NYSE: SVN) received a proposal from some existing shareholders and sponsors, including the Carlyle Group (NYSE: CG), to take the company private.
The group would form an acquisition vehicle to implement the transaction. The proposal would let the group pay $4.23 per ordinary share and $12.70 per American Depository share to take the company private. The deal would be financed with equity and third-party debt.
An April report filed with the Securities and Exchange Commission reveals the company had about 149.93 million outstanding common shares, putting the value of the transaction at a minimum of $634.21 million.
The Guangzhou, China-based hotel chain converts and operates limited-service economy hotels across metropolitan areas in China under the 7 Days Inn brand.
Carlyle Group is a private equity firm based in Washington, D.C., with more than $156 billion in assets under management.