[Travel News]: Sequoia China joins PE firm in offer to take New Century Hotel private aims to provide the latest global travel and free travel news, travel and visa policies, and flight information. We hope to provide insights into tourism market, technology and development trends with everyone by providing the latest relevant information. Despite the raging COVID-19 epidemic in 2020, we always firmly believe that mankind will overcome the disease and the tourism market will definitely recover. look forward to your attention and support, and witness the development of the global tourism industry with us. Looking forward to the information provide can help you. We will continue to follow up and obtain the latest data, and look forward to your attention and support.

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Upscale hotel chain just got listed on Hong Kong Stock Exchange less than two years ago.

Zhejiang New Century Hotel, a high-end hotel chain invested by Group, announced on January 20 that it has received a voluntary privatization offer from an affiliated company of Sequoia China and Ocean Link. 

According to a joint announcement, the board of New Century Hotel received a letter on January 18 from the offeror Kunpeng Asia Limited, a Hong Kong-incorporated firm controled by Sequoia China and Ocean Link. Kunpeng Asia plans to buy New Century Hotel’s H Shares and Domestic Shares. 

Ocean Link is a private equity firm with a focus on China’s consumer, travel and TMT sectors. Ocean Link currently manages two USD funds and an RMB Fund. Ocean Link’s strategic partners include Group – the largest online travel agency in China, and General Atlantic – a leading global growth equity firm. The funds’ LPs include Chinese and global corporates, financial institutions, sovereign wealth funds and family offices. Group chairman James Liang is a board director of Ocean Link. 

If implemented, the privatization offer will result in the delisting of New Century Hotel from the Hong Kong Stock Exchange, where the hotel chain had its IPO less than two years ago. 

In March 2019, New Century Hotel got listed on the Hong Kong Stock Exchange with Group (Ctrip) and GreenTree Hospitality as its cornerstone investors.

According to the joint announcement on the privatization offer, Group will continue to own a 5.3% stake in New Century Hotel after completion of the offer and after the call option completion. 

The offeror will control a 28.97 stake after completion of the offer, and a 42.4% after the call option completion.

Chen Group, a major shareholder of the hotel chain, will see its stakeholding decrease from 44.88% to 41.64% after completion of the offer, and 28.21% after the call option completion.

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