Saturday, September 25, 2021

Chinese office developer plunges 40 percent after acquisition of Blackstone Drops

Share price of Beijing-based Soho China Ltd fell in Hong Kong trading on September 13 after US private equity giant Blackstone Group Inc dropped a $3 billion takeover deal last week.

The commercial real estate developer, one of the largest in China, saw the biggest daily drop in its share price in the past 14 years.

Soho said in a statement to the Hong Kong Stock Exchange on Friday that Blackstone withdrew its acquisition because preconditions were not satisfied, marking its second failed sale attempt.

The canceled deal wiped nearly $830 million off Soho China’s market value as its Hong Kong-listed shares fell 40 percent to HK$2.10 ($0.27) on Monday.

According to Soho China, in June Blackstone made an offer of HK$5 per share to buy all shares of the company. The deal helped Soho China’s share price rise dramatically from HK$2.45 on June 3 to HK$4.6 on June 17, an increase of nearly 88 percent.

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The failed takeover came amid widespread regulatory clout from the Chinese regime in various industries, including foreign investment, market competition and monopolistic checks.

Blackstone received a notification on August 3 that the regime had begun an antitrust review into the deal, Soho China announced a few days later.

Reuters contributed to the report.

Rita Lee is a reporter for The Epoch Times, which focuses on China-related topics. He began writing for the Chinese language edition in 2018.


This News Originally From – The Epoch Times

Chinese office developer plunges 40 percent after acquisition of Blackstone Drops
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