The deal calls for 7 Days, currently listed on the New York Stock Exchange, to de-list and merge with Keystone Lodgings Holdings, a consortium comprising Carlyle Asia Partners, Sequoia Capital China Growth 2010 Fund, Actis LLP, and 7 Days co-chairmen Boquan He and Nanyan Zheng.
Skadden partners Peter Huang and Daniel Dusek in Beijing and Gregory Miao in Shanghai advised Keystone along with Kirkland Hong Kong partners David Zhang, Ashley Young, and Jesse Sheley. Offshore firm
Conyers Dill & Pearman and Shanghai-based
Han Yi Law Offices are also acting for the consortium as Cayman Islands and Chinese legal advisor, respectively.
The deal will be funded in cash from existing shareholders and a loan of $120 million by a group of mainly Taiwanese banks–Cathay United Bank, Chinatrust Commercial Bank Co., Ltd, Nomura International (Hong Kong) Ltd., Ta Chong Bank, Ltd. and Taipei Fubon Commercial. The lenders are being advised by
Shearman & Sterling advised J.P. Morgan Securities (Asia Pacific) Limited, financial advisor to 7 Days Group.
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