Scheme document for Jinmao Hotel is delayed until August

China Jinmao Holdings Group and Jinmao (China) Hotel Investments and Management (Jinmao Hotel) have obtained consent to extend the deadline for despatching their scheme document from 3rd July to 17th August.

The companies jointly noted the grand court needs to sanction the proposal in order for the takeover – that was first tabled at the beginning of June – to become effective.

However, the date of the direction hearing still needs to be confirmed and the two required extra to prepare and finalise certain information before completing the scheme document.

On 12th June, Jinmao Holdings said it has approached Jinmao Hotel with a proposal to acquire the remaining 33.2 per cent not already held for a total HKD 3.19 billion (USD 411.58 million).

The offer of HKD 4.80 in cash equates to a premium of 30.4 per cent over the close of HKD 3.68 per share stapled unit on 5th June.

It is also 57.4 per cent higher than the audited net asset value of HKD 3.05, as of 31st December 2019.

Jinmao Hotel is a fixed single investment trust with an initial focus on the hospitality industry in China.

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The Group primarily owns and invests in a portfolio with diversified revenue sources and customer mix that comprise eight hotels and the mixed-use development Jin Mao Tower.

All of the properties are all located in prime, strategic locations in top-tier cities or tourist hot spots in China.

Jinmao Hotel will continue to carry on its current business, if the takeover goes ahead, and Jinmao Holdings will continue to monitor its performance and implement appropriate strategies.

The controlling shareholder is a large-scale real estate developer and operator and acts as the platform enterprise of Sinochem.

It is principally engaged in city operations, commercial leasing, retail and hotel management, and finance.

© Zephus Ltd

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