Skadden, Arps, Slate, Meagher & Flom and Kirkland & Ellis are advising a consortium led by the Carlyle Group on a $688 million deal to take Chinese budget hotel chain 7 Days Group Holdings Ltd. private.
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.
OMelveny & Myers is acting for 7 Days Group itself while Baker & McKenzie and Maples and Calder are advising a special committee of the companys board of directors.
Latham & Watkins is representing He and Zheng.
The deal will be funded in cash from existing shareholders and a loan of $120 million by a group of mainly Taiwanese banksCathay 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 Linklaters.
Shearman & Sterling advised J.P. Morgan Securities (Asia Pacific) Limited, financial advisor to 7 Days Group.