Blackstone returns to China office at good time

SOHO China

17/06/2021 03:49

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Yawen Chen
    HONG KONG, June 17 (Reuters Breakingviews) - After mooted
talks fell through last year, the U.S. private equity firm is
back with a $3 bln bid for Soho China. Even with a generous
premium, the implied return looks decent. With real estate
assets hit by the pandemic, the deal is a sensible bet on the
country’s recovery.
    Full view will be published shortly.
    Follow @ywchen1 https://twitter.com/ywchen1 on Twitter
    
    CONTEXT NEWS
    - Blackstone Group will buy all the issued shares in Soho
China for HK$23.7 billion ($3.1 billion), and maintain its Hong
Kong stock market listing, the Chinese office developer said in
a filing on June 16.
    - The offer price, at HK$5 per share, represents a premium
of 99.5% to the 30-day average price, the filing said. The offer
is conditional on Chinese competition authorities granting
clearance.
    - Soho China is 64% owned by the husband-and-wife founding
team of Chairman Pan Shiyi and Chief Executive Zhang Xin. They
will retain a stake of about 9% and become its second-largest
shareholder after the deal.
    - Shares of Soho China opened up 25% to HK$4.76 on June 17. 
  
    - For previous columns by the author, Reuters customers can
click on  CHEN/ 
 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Soho China announcement    https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0616/2021061600985.pdf
Blackstone to buy office developer SOHO China in $3 billion deal
    urn:newsml:reuters.com:*:nL3N2NY12L
Soho China 2020 annual report:    https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0325/2021032500348.pdf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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 | Editing by Robyn Mak and Katrina Hamlin)
 ((yawen.chen@thomsonreuters.com; Reuters Messaging:
yawen.chen.thomsonreuters.com@reuters.net))