Hotel group Shanghai Jin Jiang to buy stake in Keystone Lodging for $1.3 bln
HONG KONG, Sept 18 (Reuters) - Chinese hotel operator Shanghai Jin Jiang plans to buy an 81 percent stake in Keystone Lodging Holdings for 8.3 billion yuan ($1.30 billion) to gain a stronger foothold in the country's expanding domestic travel business.
Shanghai Jin Jiang International Hotels Development Co Ltd plans to fund the deal with cash from bank loans and its own capital, it said in a filing on the Shanghai stock exchange.
Keystone Lodging, registered in Caymans Islands, has operations in China after it merged with Chinese budget hotel chain operator 7 Days Group Holdings in 2013.
Trading in Jin Jiang's shares was halted on July 8 and trading will remain suspended pending approval of the deal by Jin Jiang's shareholders and relevant Chinese authorities. ($1 = 6.3628 Chinese yuan renminbi) (Reporting by Lee Chyen Yee in Singapore and Twinnie Siu in Hong Kong. Editing by Jane Merriman)
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