Asia

Shares of office developer SOHO China tumble after Blackstone scraps deal


HONG KONG : Shares of Chinese office developer SOHO China tumbled 40per cent early on Monday in their biggest daily drop since listing more than 14 years ago after Blackstone Group Inc scrapped a US$3 billion takeover deal.

The stock fell to as low as HKUS$2.23, the lowest since Nov. 3, 2020, in its worst day since listing in Oct. 2007.

SOHO China said Blackstone, which had offered HKUS$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.

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 64per cent 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 and the benchmark index both dropped 1.6per cent.

(Reporting by Clare Jim and Donny Kwok; Editing by Shri Navaratnam)



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