Market Overview

Blackstone Offers $4B To Take SOHO China Private: Report

Share:
Blackstone Offers $4B To Take SOHO China Private: Report

Blackstone Group Inc. (NYSE: BX) has offered to take Beijing-based builder SOHO China Ltd. (OTC: SOHOF) private in a $4 billion deal, Reuters reported Tuesday citing sources.

What Happened

The talks that began in early February value SOHO China at 77 cents per share (HKD $6), about twice the average January trading price of its shares in Hong Kong at 39 cents (HKD $3.03).

The deal could be finalized in the coming weeks, the sources told Reuters, and Blackstone would take over any debt held by SOHO China.

The construction company, founded in 1995, had reported a debt of $4.7 billion by June 2019 in its latest earnings report.

Blackstone was one of the participants in SOHO China's sale of prime commercial property in Beijing and Shanghai.

The sources told Reuters that buying the entire company rather than individual properties would be a less complicated affair for the New York-based private equity firm.

Price Action

SOHO China's shares traded 37.6% higher at $4.10 HKG at press time in Hong Kong.

Blackstone's shares closed 13.10% lower at $46.98 on Monday and traded 2.49% higher at $48.15 in the after-hours session.

 

Related Articles (BX + SOHOF)

View Comments and Join the Discussion!

Posted-In: Blackstone Group ReutersM&A News Financing Global Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com