Baker & McKenzie and King & Wood have advised Shanghai Jin Jiang, a Chinese hotel chain, on its first overseas acquisition. “It is one of the first transactions of this kind – a PRC state-owned hotel group acquiring a US-listed hospitality group. Structuring the deal to make it tax-efficient for the parties concerned required very sophisticated tax advice,” said Elsa Chan, head of the Hong Kong securities practice group at Baker & McKenzie.

 "The most interesting component of this transaction was introduced as a result of China's outbound M&A rules and the limited ability for Chinese bidders to obtain those approvals prior to the execution of a definitive acquisition agreement.  Those procedural issues introduced a unique challenge to the normal structure of a U.S.-style acquisition which do not normally include any 'outs' for a bidder's home country approvals," said Jeanette Chan, lead partner at Paul Weiss.

Baker & McKenzie helped Shanghai Jin Jiang list its shares in Hong Kong in 2006, while Hogan & Hartson has advised Thayer on a number of its business transactions within the US. Paul Weiss has also enjoyed a long-term relationship with the IHR and has represented the company since it was formed through ther merger of Meristar Hotels & Resorts and Interstate Corporation.

Prior to the acquisition, an investigation concerning a proposed acquisition of IHR by Hotel Acquisition Co was conducted. Three US firms – Kendall Law Group, Brodsky & Smith and Levi & Krosinky – served as legal advisors on the investigation.

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