Shares in Chinese property developer Soho China dropped as much as 40% on Monday, after a proposed $3 billion takeover by US private equity group Blackstone fell through, reports the Financial Times. Around $830 million was wiped from the company’s market value as its Hong Kong-listed shares plummeted 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 ($0.64) offer made in June, which had valued the property developer at HK$26 billion ($3.3 billion) but had been conditional on Beijing’s approval. By late Monday morning in Hong Kong, Soho China shares closed down 34.6% at HK$2.29 ($0.29), about the same level as before the planned purchase was announced.