Blackstone Group Makes US$3.05 Billion Offer for Soho China
June 16 2021 - 7:37PM
Dow Jones News
By P.R. Venkat
Blackstone Group Inc. has made an offer to buy commercial
properties operator Soho China for 23.66 billion Hong Kong dollars
(US$3.05 billion) as the U.S. private-equity firm seeks to build
its real-estate investment portfolio in China.
Blackstone has offered to buy 4.73 billion shares for HK$5 each,
a premium of nearly 32% to the last traded price of HK$3.80 a
share, Soho China said late Wednesday.
Blackstone intends to retain the company's listing status and
will undertake a detailed strategic review of Soho China, including
rationalizing its business activities and asset portfolio.
Established in 1995, Soho China holds and operates 1.3 million
square meters of commercial properties in China.
The proposed acquisition provides an opportunity for Blackstone
to invest in a company with portfolio of commercial properties in
Beijing and Shanghai, Soho China said.
Blackstone has been an active investor in Chinese properties
over the past decade, and owns approximately 6 million square
meters of properties in China. Its real-estate portfolio includes
hotel, office, industrial and residential properties in the U.S.,
Europe, Asia and Latin America.
Blackstone had approximately US$196 billion capital under
management as of end-March.
Soho China's shares are on a trading halt and are due to resume
trading Thursday.
Goldman Sachs is acting as the financial advisor to Blackstone
on the deal.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
June 16, 2021 20:24 ET (00:24 GMT)
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