Homeinns Hotel Group (ADR) (NASDAQ:HMIN) shares are trading up today after the company has announced that they have agreed to accept terms of a buyout offer that they have received from Shanghai-listed BTG Hotels.
Homeinns Hotel Group (ADR) (NASDAQ:HMIN) runs the Homeinns hotel chain in China, headquartered in Xuhui District, Shanghai, and is recognized as the largest “budget” hotel chain in the country. Monday brought great news to shareholders of the company, as BTG has entered into a definitive agreement to acquire the company for $35.80 in cash per share, which is an 11% premium of Friday’s closing price.
The acquisition is expected to be complete sometime in the first half of 2016, and is subject to regulatory approval and otgher closing conditions.
The stock is up 7.31% or $2.35 following the news, hitting $34.49 per share. About 687,948 shares traded hands or up 448.36% from the average. HMIN has risen 15.20% since May 4, 2015 and is currently uptrending. It has outperformed the S&P500 by 16.28%.
Homeinns Hotel Group, formerly Home Inns & Hotels Management Inc. , is a holding company. The company has a market cap of $1.55 billion. The Firm is an economy hotel chain in China. It has 27.4 P/E ratio. The Firm develops and operates economy hotels across China under Homeinn, Motel, Yitel and Fairyland brands.