China Lodging Group to Acquire Shares of Quanjude for RMB14.0/Share

China Lodging Group

today announced that the Company, through one of its subsidiaries, entered into a purchase agreement ("Agreement") to acquire ordinary shares of China Quanjude (Group) Co., Ltd. ("Quanjude", SHE:002186) through a private placement of RMB100 million (approximately US$16.3 million), effective upon meeting certain closing conditions. The purchase price is set at RMB14.03 per ordinary share, calculated as not less than 90% of the average of daily trading price for Quanjude's ordinary shares on Shenzhen Stock Exchange within 20 trading days preceding the Agreement date. The transaction is expected to close within the next six months. The placement will be of a total size of RMB350 million, with the remaining purchased by IDG Capital Management (HK) Limited. Post the transaction, China Lodging Group and IDG Capital will hold 2.3% and 5.8% of Quanjude, respectively. Quanjude, widely known for its signature dish, Quanjude Beijing Roasted Duck, is a top restaurant brand in China. With 102 restaurants across China and Asia Pacific Region, Quanjude enjoys high consumer recognition. Aside from restaurants, Quanjude also produces packaged ducks