After the Blackstone transaction failed, Soho China’s stock price plummeted by 40%


SOHO China Co., Ltd. update

After the US private equity group Blackstone withdrew its $3 billion acquisition of the Chinese real estate company last week, Soho China’s stock price fell 40% on Monday.

Soho China’s Hong Kong-listed stock plummeted when the exchange opened, and its market value evaporated by approximately US$830 million.The two companies said in a joint statement that their share prices have fallen on Friday They will not be able to obtain antitrust approval within the agreed time frame.

This vetoed Blackstone’s offer of HK$5 per share Made in June, The real estate developer valued the real estate developer at 26 billion Hong Kong dollars (3.3 billion US dollars), subject to Beijing’s approval. By Monday night in Hong Kong, Soho China’s share price was HK$2.28, the same level as before the announcement of the planned acquisition.

The failure of this acquisition occurred in the context of China’s extensive policy reforms and regulatory suppression, and the Chinese authorities have stepped up their efforts. Foreign investment review And fight what they think Monopolistic business practices.

Therefore, Wall Street is experiencing a Widening the gap Excessive investment in China, because the snowball-like regulatory review has shaken investors’ confidence in the world’s second largest economy.

The failed transaction also made Soho China founder Pan Shiyihe Zhang XinSince the announcement of the deal, the colorful couple has been synonymous with the development of the skylines of Beijing and Shanghai, as well as a topic of intense discussion on Chinese official and social media.

“Do you want to run away with your money? Don’t you want to stay here to lead us to prosperity together?” asked Zhang Yixuan, a media figure who wrote on Weibo, a Twitter-like Weibo platform in China.

Chinese media and Internet users have been criticizing the couple, who have recently spent more time abroad. Large donation To Harvard University and U.S. real estate purchase Made the headlines.

Photos of Pan and Zhang attending the meeting after the Blackstone transaction failed U.S. Open The game held in New York over the weekend quickly spread on social media.

“So they have left,” one social media user said.

“They transferred their assets a long time ago,” another claimed.

For Blackstone, the failure to acquire Soho’s high-quality real estate portfolio in China’s largest city marks a blow to the co-founders Steven Schwarzman’s plan In order to enhance the status of its group in the country.

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