Core Viewpoint - Blackstone Group has officially terminated its acquisition offer for SOHO China, marking the second failed attempt since March 2020, indicating ongoing challenges for SOHO China's privatization efforts [1][2][7]. Acquisition Attempt Summary - The termination of the acquisition was due to insufficient progress in meeting the preconditions required for the offer, leading all parties to agree that the conditions could not be satisfied by the deadline [2][7]. - This is not the first failed acquisition attempt by Blackstone; a previous offer in March 2020 also ended without success due to a lack of consensus [2][3]. Financial Details - Blackstone's latest offer was to acquire 91% of SOHO China at a price of HKD 5 per share, totaling approximately HKD 236.58 billion (around USD 30.48 billion) [4]. - Following the completion of the transaction, the founders of SOHO China, Pan Shiyi and Zhang Xin, would cash out approximately HKD 142.81 billion (around RMB 11.8 billion) while retaining only 9% of the company's shares [5]. Company Background and Performance - SOHO China, founded in 1995 by Pan Shiyi and Zhang Xin, specializes in high-end commercial real estate development in major cities like Beijing and Shanghai [9]. - The company has faced declining revenues and profits since shifting its business model from "development and sales" to "development and holding" in 2012, with net profits dropping significantly from 2018 to 2020 [9][10]. - As of the latest financial report, SOHO China reported a revenue of HKD 8.05 billion for the first half of 2021, a 45% decrease year-on-year, while net profit showed a 67% increase to HKD 3.4 billion [11]. Market Conditions and Future Outlook - The current market conditions, including rising vacancy rates and declining rental prices for prime office spaces in first-tier cities, pose significant challenges for SOHO China's future profitability [10]. - Analysts suggest that the decision to sell assets may be a strategic move in light of the tough regulatory environment and the company's ongoing financial struggles [10].
SOHO中国出售“黄了”，潘石屹夫妇套现118亿落空