Home Inns gets antitrust Ok for Motel 168 deal

Chinese economy hotel company Home Inns & Hotels Management Inc. has received antitrust approval for its planned acquisition of Motel 168 International Holdings Ltd.

The approval from the Ministry of Commerce of the People"s Republic of China moves Home Inns one step closer to completing the deal and speeds up the anticipated closing.

Home Inns announced in May that it was buying Motel 168 in a cash-and-stock deal valued at $470 million. The transaction includes about $305 million in cash and approximately 8.2 million of Home Inns" shares at $40.37 per American depository share. Each ADS equates to two ordinary shares.

Home Inns said it will fund the cash part of the deal with available cash and a new $250 million four-year senior secured term loan.

The acquisition is expected to close by the third quarter"s end, Home Inns said on Friday. The buyout was initially expected to close in the fourth quarter.

Shares of Home Inns fell 54 cents to $36.45 in morning trading.