Ukrainian Hotel Chain "7 Days" Raises $32.9m after Placing 16% Stake
OREANDA-NEWS. New Ukrainian hotel chain operator Clubhouse Group Holdings has announced placement of a 16.4% stake in the company with western investors for $32.9m. The company shareholders plan to use the proceeds from the placement, which puts the market capitalization of the company at $200m, to develop their chain of 3-star hotels under the “7 Days” brand in various regions of the country.
Kiev-based investment bank Dragon Capital organized the placement and acted as the exclusive financial advisor on the transaction, the bank's press service informs. The newly placed shares, which attracted a range of institutional and private investors from Europe and the United States, will be converted into Global Depository Receipts (GDRs) with listing on the Frankfurt Stock Exchange to give investors added liquidity. A total of 2,452,250 GDRs priced at $13.43 per GDR were issued, implying a ratio of 250 GDRs per one share.
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