Blackstone to buy out office developer SOHO China in $3 billion deal
Reuters
Published Jun 16, 2021 12:34AM ET
Updated Jun 17, 2021 12:21AM ET
By Clare Jim
HONG KONG (Reuters) -Blackstone Group Inc will take control of SOHO China Ltd in a HK$23.7 billion ($3.05 billion) deal and maintain its stock market listing, the Chinese office developer said in a filing on Wednesday, while the founders will retain a 9% stake.
The U.S. private equity firm will offer HK$5 per share, 31.6% higher than the last closing price of HK$3.8 on Friday, in what would be its largest real estate deal in China.
SOHO China's shares jumped as much as 25.8% to HK$4.78 early on Thursday, as they resumed trading after being suspended since Tuesday.
Blackstone (NYSE:BX), which currently owns around 6 million square metres (65 million square feet) of properties in China, is seeking to expand there as it is confident about the country's long-term economic prospects and the Beijing and Shanghai office market, the filing said.
SOHO China, a major developer well known for its futuristic office buildings on the mainland, has 1.3 million square meters of commercial properties in the country.
The company is 64% owned by the husband-and-wife founding team of Chairman Pan Shiyi and Chief Executive Zhang Xin. After the deal, they will become its second-largest shareholder with a 9% interest.
The offer is conditional on Chinese competition authorities granting clearance, the filing added.
Founded in 1995, SOHO China went public in Hong Kong in 2007. Its shares have gained 62% in the past month and it had a market value of $2.55 billion at the stock's last close, according to Refinitiv data.
The company has been scouting for buyers for its prime commercial property assets as the founders looked to shift their focus to overseas markets. Reuters reported last year Blackstone was in exclusive talks to take SOHO China private in a $4 billion deal, but later halted the talks.
($1 = 7.7620 Hong Kong dollars)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.