(Market Screener) Shares of China’s real estate developer Soho plunged as much as 35% on Monday in Hong Kong after a $3 billion purchase talks by Blackstone Group collapsed.
Soho and Blackstone blamed the “lack of progress” in talk falter, despite having a preliminary agreement back in June.
The preliminary agreement for Soho signaled confidence by Blackstone on long-term prospects, amid suppressed real estate industry in China.
The half year net profit of Soho in China rose by 67% to 340 million yuan, or $53 million, which translates to 0.07 yuan per share, but revenues were down by more than 40% to 840 million yuan. Blackstone had offered HK$5 a share.
Soho owns about 1.3 million square meters of real estate, mainly in Shanghai and Beijing, while Blackstone controlled about $196 billion worth of real estate as of March 31.
0410: HKG is down -34.57%, BX: NYSE is down -0.52%.
