Global investor Actis has announced the sale of its minority stake in Plateno Hotel Group to Shanghai JinJiang International Hotels Development Co., a Shanghai A share listed subsidiary of the Chinese state-owned enterprise JinJiang Group.
Plateno (formerly 7 Days Inn Group) is a Chinese budget and mid-range hotel chain.
JinJiang Hotels had previously acquired an 81-percent stake in Plateno at an enterprise value exceeding RMB10 billion (approx. US$1.53 billion) in a transaction including other selling shareholders. Following the acquisition, JinJiang Group will operate more than 6,000 hotels in 55 countries and more than 100 million members.
Actis invested in 2008 and committed additional capital in 2013 to support Plateno's delisting from the New York Stock Exchange (NYSE).
Commenting on the investment, Max Lin, Director at Actis said: "We are delighted with what we have been able to help Plateno achieve over our seven year investment period. When we invested, Plateno consisted of one brand of economy hotels. Together with management we have grown the business into a multi-brand hotel company, attractive to one of China's largest SOE Chinese hotel brands. With JinJiang's strategic investment, Plateno is well-positioned to continue its growth and we wish the team continued success."
The transaction extends Actis' track record of investing in the Chinese consumer sector. Since 2001, the firm has invested over US$2 billion in the consumer sector and over US$680 million in consumer companies in China.