Hong Kong-listed Shanghai Jin Jiang Hotels is flexing its muscles by making its second major acquisition this year. Advised by its long-term legal counsels – King & Wood and Baker & McKenzie – the hotelier is buying US$397m worth of assets, including passenger transport services, warehouses and travel agencies, from its state-owned parent, Jin Jiang International.

Under the agreement, Shanghai Jin Jiang has agreed to acquire approximately 38% of Jin Jiang Investment, which operates passenger transport and logistics services and approximately 50% of travel agency operator, Jin Jiang Travel.

In April this year, Shanghai Jin Jiang also acquired US Interstate Hotels and Resorts for US$307m. Also in the hotel industry, China Lodging Group increased its competitiveness by launching its US$126m NASDAQ IPO (advised by Jun He, Davis Polk, Conyers Dill & Pearman, Zhong Lun and Simpson Thacher) in April.
The deal is subjected to approval from the State-owned Assets Supervision and Administration Committee of the Shanghai municipal government and the State Council. ALB

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