7 Days receives offer to go private

A group of investors has launched a bid to take over China-based hotel chain 7 Day Group Holdings (SVN.NYSE), valuing the company at US$635 million, The Wall Street Journal reported. The 7 Days Group said investors led by the company’s co-chairmen and founders, Boquan He and Nanyan Zheng, have offered US$4.2333 per ordinary share and US$12.70 per American depository share in cash to take the company private. As of March 31st, He owned 23% of standard shares while Zheng held 9.3%, according to company filings. The duo said the bid will give “superior value” to current shareholders. Carlyle Group (CG.NASDAQ) and Sequoia Capital China are joint sponsors on the proposal. In August, 7 Days, which operates economy hotels across urban China, reported second quarter earning increased 23% while revenue grew 27%. The company has consistently posted revenue gains in excess of 10% for the last two years.