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Clifford Chance advises Actis on sale of minority stake in Chinese hotel chain, Plateno Hotel Group

7 March 2016

Clifford Chance advises Actis on sale of minority stake in Chinese hotel chain, Plateno Hotel Group

Leading international law firm Clifford Chance has advised leading growth market investor, Actis on the sale of its stake in Plateno Hotel Group (Plateno) to Shanghai JinJiang International Hotels Development Co. (Jinjiang Hotels), a Shanghai A-share listed subsidiary of the Chinese state-owned enterprise Jinjiang Group. Plateno, formerly 7 Days Inn Group, is a leading Chinese budget and mid-range hotel chain.

As a strategic investment, Jinjiang Hotels acquired an 81% equity stake in Plateno at an enterprise value exceeding RMB10 billion (approximately US$1.53 billion) from Actis and other selling shareholders, including other prominent private equity funds active in the Greater China market.

Partner Terence Foo, who led the deal, said, "We were pleased to advise Actis on this successful divestment to a Chinese strategic buyer. With the recent market volatility in China, we continue to see trade sales as a viable exit route for PE investors."

Terence was supported by counsel Hong Zhang and associate Bernard Cheng.     

Actis first invested in Plateno in 2008, and committed additional capital in 2013 to successfully facilitate the privatisation of Plateno's listed entity from the New York Stock Exchange. Together with the management team, Actis played a key role in Plateno's corporate development, and transformed it from an operator of 160 economy hotels into one of China's leading hotel operators with over 2500 hotels nationwide, including a partnership with Hilton Hotels & Resorts.