Shares of office developer SOHO China tumble after Blackstone scraps deal

SOHO China

13/09/2021 03:32

HONG KONG, Sept 13 (Reuters) - Shares of Chinese office
developer SOHO China  0410.HK  tumbled 40% early on Monday in
their biggest daily drop since listing more than 14 years ago
after Blackstone Group Inc  BX.N  scrapped a $3 billion takeover
deal.
     The stock fell to as low as HK$2.23, the lowest since Nov.
3, 2020, in its worst day since listing in Oct. 2007.
    SOHO China said Blackstone, which had offered HK$5 per share
in June to buy all shares in the company, had abandoned the deal
on Friday as pre-conditions were unable to be satisfied.
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    The company had said in June the deal was subject to Chinese
competition authorities granting clearance.    
    It would have been the largest real estate deal in China.   
    SOHO China is 64% owned by the husband-and-wife founding
team of Chairman Pan Shiyi and Chief Executive Zhang Xin, who
have been scouting for buyers for its prime commercial property
assets as they looked to shift their focus to overseas markets. 
    The Hang Seng Composite Index tracking properties and
construction stocks  .HSCIPC  and the benchmark index  .HSI 
both dropped 1.6%.

 (Reporting by Clare Jim and Donny Kwok; Editing by Shri
Navaratnam)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))