Grant Thornton awarded the “Best M&A Financial Service Provider” for successfully assisting BTG Hotels to take over Home Inns

In a surging trend of Chinese enterprises pulling out of overseas capital markets through privatization, Home Inns, a Nasdaq-listed hotel group that operates China’s largest budget hotel chain,was absorbed as a wholly-owned subsidiary of Beijing Tourism Group(BTG)Hotels this year in a transaction worth of RMB11.05 billion. The deal was approved by the China Securities Regulatory Commission and the Ministry of Commerce for the first time where a domestic A-share listed company completed its acquisition of foreign assets through cross-border stock swap without removing the red chip structure of the target company. Grant Thornton, in charge of the domestic as well as oversea auditing work, was awarded the “Best M&A Financial Service Provider” by the China M&A Association and the Global M&A Research Center at the China M&A Annual Conference in November this year for its distinguished service to assist BTG Hotels to complete the transaction.

This transaction is exemplary in utilizing an innovative payment method of assets purchase by share issue, which will allow A-share listed companies to complete cross-border M&A deals efficiently while avoiding the foreign exchange constraints and mitigating the systematic risk of domestic capital market. The take-over of Home Inns is also viewed as an important initiative by BTG Hotels to embrace its Internet-plus strategy as well as to pilot the hybrid ownership reform of SOEs. The merger enhances the market eminence of BTG Hotels, making it the only listed hotelier in China that operates full-spectrum brands ranging from five-star lodgings to budget accommodation.

While meeting the timeframe request of the client, Grant Thornton’s engagement team completed the audit of the financial statements of the target assets prepared respectively in conformity with China accounting standards and foreign accounting standards, and also completed the pro forma consolidation review. Based on deep understanding of domestic and international accounting standards they offered seamless pragmatic solutions through a highly proactive and fast-moving approach, and supported BTG Hotels to successfully complete the highly complicated and unprecedented cross-border M&A deal.