Soho China, developer famous for buildings designed by Zaha Hadid, says privatisation deal with Blackstone is dead
- Reuters reported on March 9 that the company was in discussions with Blackstone about US$4 billion deal
- Economic slowdown and China’s fraying ties with western governments have prompted foreign investors to temper their investment in mainland property, analyst says
Beijing-based office developer Soho China, which was in talks with US private equity group Blackstone about a privatisation deal worth more than US$4 billion, said on Thursday that the deal was off.
The company, which is listed in Hong Kong and is famous for buildings designed by late British Iraqi architect Zaha Hadid, said in a filing to the Hong Kong stock exchange that: “All previous discussions with various investors have now been terminated and have not at this time resulted in the terms for a potential transaction being agreed.”
Blackstone was to pay HK$6 (77 US cents) per share, almost doubling Soho China’s average price of HK$3.03 in January, to take the company private, as reported by Reuters on March 9. The company was talking exclusively to Blackstone, according to the report, which cited people with direct knowledge of the matter.
Two days later, Soho China confirmed the report and said that it had been in discussions with overseas investors to explore the possibility of a strategic partnership, which might or might not have led to a general offer for its issued share capital.
Soho China’s shares soared 37.6 per cent to HK$4.10 on March 10 on the news, before trading was halted in Hong Kong. The company’s stock closed 2.42 per cent lower at HK$2.82 on Thursday, before the termination was announced.
