GT Online: Blackstone Abandons the Acquisition of SOHO China, and Pan Shiyi’s Liquidation is Blocked
Written by: 西枫westca
Proofread by: Ermat
According to First Financial Network report on September 10, SOHO China issued an announcement on the Hong Kong Stock Exchange. The two parties determined that the prerequisites could not be met by the deadline so that Blackstone abandoned its more than $3 billion acquisition plan. Two parties agreed not to postpone the final closing date.
As early as June 16, SOHO China announced that Blackstone has issued a comprehensive takeover bid to acquire a controlling stake for approximately US$3 billion, while SOHO China’s existing controlling shareholder will retain 9% of the equity. If the transaction is completed, it will be Blackstone’s largest real estate investment in China. In recent years, in order to be able to leave the Communist China as soon as possible, Shiyi Pan has been selling and selling, and the sale price this time is also less than 40% off. However, on August 6, Soho China received a notice from the State Administration for Market Regulation of China to formally review the application submitted by the offeror in accordance with the “Chinese Anti-Monopoly Law.” The arrival of this news, coupled with a large number of problems in Chinese real estate companies recently, has significantly cooled the property market. This could lead to Blackstone’s eventual decision to abandon the acquisition plan.
But as Mr. Guo foresaw long ago, domestic private entrepreneurs, no matter how much they collude with the Chinese Communist Party, will not escape the result of being cut from leeks. With the abandonment of Blackstone, it will be difficult for SOHO China to find a new buyer. Shiyi Pan’s greed has resulted in today’s outcome, which is precisely the result of “Man proposes, God disposes”.