October 24 -- Guangdong Dongfang Hotel (000524.SZ) plans to issue 232 million shares at 9.62 yuan per share to Linnan Group in order to buy the latter’s Guangzhou Garden Hotel, China Hotel and Guangzhou Linnan International Hospitality Management, reports yicai.com, citing a company filing.

The assets to be acquired are worth a total of 2.23 billion yuan.

Following the proposed transaction, the stake of Linnan Group in Guangdong Dongfang Hotel will be raised from 51.55 percent to 73.95 percent.

Linnan Group, established in 2005 with a registered capital of 1.5 billion yuan, is a company involved in the hotel management and tourism businesses.

Source:CapitalVue