UBS subscribes 6 mln shares in Hunan Huatian's private placement

UBS, one of the world's leading financial firms, has agreed to buy 6 million shares of Hunan Huatian Great Hotel Co. Ltd<000428> in a private placement, according to a statement of the Chinese hotel released today.

Huatian will sell a total of 23 million shares at RMB 15.68 apiece. Four institutional investors, namely Hongta Securities, UBS, China Asset Management Co. and SooChow Securities, have agreed to buy the shares, with subscriptions of 4 million, 6 million, 11 million and 2 million respectively.

The proceeds, which is expected to be RMB 360.64 million, will be used to fund its development projects in Beijing - Beijing Century Huatian Business Hotel and budget hotel chain.

Founded in 1985, the Changsha-based hospitality service provider was listed on the Shenzhen Stock Exchange in August 1996, and currently it runs 17 star-level hotels and two chain hotels nationwide.