UPDATE: Oppenheimer Moves to Not Rated on 7 Days Group Holdings on Take-Private Proposal
Oppenheimer changed its rating from Outperform to Not Rated on 7 Days Group Holdings (NYSE: SVN) following a proposal by select shareholders to take the company private.
Oppenheimer noted, "7 Days Group announced on September 26, 2012 that it has received a proposal letter from certain existing shareholders of the company, including Mr. Boquan He, Mr. Nanyan Zheng, and their respective affiliates to acquire all of the company's outstanding shares not currently owned by them for US$4.23 per ordinary share ($12.70 per ADS). We estimate approximately $430M cash is needed to finance the deal. We are changing our rating to Not Rated from Outperform, and removing our $20 price target, as the stock will no longer trade on fundamentals. We think the deal is likely to be closed."
7 Days Group Holdings closed at $11.65 on Thursday.
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