Ocean Link, Sequoia Capital China offer to take HK-listed New Century Hotel private

Photo: Paul Postema / Unsplash

A consortium led by buyout firms has offered to take Zhejiang New Century Hotel Management Co. private in a deal that would value the hotel chain operator at about HK$5.2 billion ($670 million).

Ocean Link and Sequoia Capital China proposed to pay HK$18.15 in cash for each New Century Hotel’s H-share they don’t already own, the company said in a filing on Wednesday, confirming an earlier Bloomberg News report. The offer represents a 24.7% premium to the last closing price in Hong Kong. The group will also make a cash offer for the hotel operator’s domestic shares.

The private equity firms will commit a total of HK$1.51 billion to the offer, with Sequoia China contributing 68% of the fund and the rest comes from Ocean Link, the statement said. The offer is subject to approvals by shareholders and China’s regulators.

Trading in New Century Hotel, which has been suspended since Tuesday morning, will resume on Thursday. The company had a market value of about HK$4 billion as of Monday. UBS Group AG is financial adviser to the offerer.

New Century Hotel, founded in 1988, manages more than 580 hotels in the world’s second largest economy, according to its website. It posted a net loss of 92 million yuan ($14 million) for the six months ended June 30 as the coronavirus outbreak weighed on its business. The company raised about HK$1.2 billion in its Hong Kong initial public offering in 2019.

Ocean Link, which focuses on China’s consumer, travel and telecommunications, media and technology sectors, was part of an investor group that agreed to take 58.com Inc. private last year in a deal valuing China’s biggest online classifieds firm at about $8.7 billion.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.