[Epoch Times August 08, 2021](Epoch Times reporter Li Jing comprehensive report) The acquisition of “SOHO China” by the well-known American private equity fund Blackstone Group (also translated as “Blackstone Group”) has been twists and turns. A few days ago, the regulatory authorities of the Communist Party of China formally filed a case for review of this transaction on the grounds of the Anti-Monopoly Law.
On the evening of August 6, SOHO China issued an announcement stating that the offeror (Blackstone) received a notice issued by the State Administration of Market Supervision on August 3 to formally review the application submitted by the offeror in accordance with the Anti-Monopoly Law.
The transaction involved in the official review is what SOHO China previously said: Blackstone has issued a general offer to acquire a controlling stake in SOHO China at a price of HK$5 per share, with a total amount of up to HK$23.658 billion. After the transaction is completed, SOHO China will retain its listing status, and the existing controlling shareholders will retain 9% of the shares.
China Business News reported that this transaction was regarded as the “final song” for Pan Shiyi to cash out and leave the market. After many “selling” rumors, SOHO China finally determined the target of the order, even if it is discounted, it will be sold.
According to the information disclosed by SOHO China, after the transaction announcement was issued, the offeror has submitted the relevant documents and materials for the merger review application to the State Administration for Market Regulation of the Communist Party of China.
According to the provisions of the “Anti-Monopoly Law” of the Communist Party of China, after receiving the relevant company documents, the supervision will make a preliminary review decision within 30 days to determine whether further review is required.
However, there is still uncertainty about whether Pan Shiyi can cash out as he wishes. The market’s worries about this issue have long been fermented a few days ago.
In the morning session of Hong Kong stocks on July 29, SOHO China’s stock price plummeted by more than 30%, and closed at 3.02 Hong Kong dollars per share, a drop of 19.89%. A month ago, SOHO China’s stock price rose sharply. Compared with the high of 4.78 yuan per share on June 17, the stock price has nearly cut in half.
Huang Lichong, president of Huisheng International Capital, believes that in the current situation of high uncertainty about the attitude of the regulatory authorities, any turmoil can easily lead to panic in the market.
“Times Finance” reported that some investors speculated that some institutions had learned in advance that the Chinese Communist Party’s regulatory authorities would veto the Blackstone Group’s offer to acquire SOHO China, leading to large-scale capital flight.
Wei Shilin, deputy director and secretary-general of the Competition Law Committee of the Beijing Intellectual Property Law Research Association, said in an interview with Economic Observer on the 7th that from the perspective of SOHO China’s business type and scale, it is difficult to veto this transaction through anti-monopoly review.
Wei Shilin believes that, in addition to anti-monopoly review, given the geographic location of some of SOHO’s assets in China, the transaction may also face foreign investment in national security review.
As of the close on August 6, the Hong Kong-listed SOHO China closed at 3.22 Hong Kong dollars, with a market value of 16.7 billion Hong Kong dollars.
Editor in charge: Sun Yun#
.