Shares in Soho China fell as much as 40 per cent on Monday after US private equity group Blackstone pulled its $3bn takeover of the Chinese property company last week.
About $830m was wiped from Soho China’s market value as its Hong Kong-listed shares tumbled when the exchange opened for trading. The share price drop came after the companies said in a joint statement on Friday that they would not be able to receive antitrust approval for the takeover within the agreed timeframe.
That nixed Blackstone’s HK$5-a-share offer made in June, which had valued the property developer at HK$26bn (US$3.3bn) but had been conditional on Beijing’s approval. By late Monday morning in Hong Kong, Soho China shares were trading at HK$2.28, the same level as before the planned purchase was announced.