$SOHO CHINA (00410.HK)$On August 6, as this transaction encountered an antitrust investigation by the State Administration for Market Regulation, Blackstone's acquisition of soho china once again changed. The market is cautious about whether this transaction can be completed.
IPG China's chief economist Bai Wenxi, in an interview with the Business School reporter, said that Blackstone already holds many commercial properties in China, and the acquisition of SOHO China has indeed triggered the need for antitrust review. This event only represents Blackstone's acquisition of SOHO China entering the antitrust investigation stage of Chinese regulatory authorities. As for whether further information needs to be provided, further explanations need to be made, and whether this transaction will be approved or rejected, there is a great deal of uncertainty.
Bai Wenxi believes that, based on the current situation, the antitrust review is the ostensible reason, and the sale of SOHO China at a low price also involves capital outflows, but this issue is something that cannot be ignored for an institution whose actual controller is a private enterprise.
Bai Wenxi expects that if this transaction ultimately fails to be completed, it will be a significant bearish signal for SOHO China and its actual controllers, Pan Shiyi and his wife. This is also the main and direct reason for the recent sharp drop in SOHO China's stock price after rumors that this transaction was halted. In terms of the current economic atmosphere in China, there is still considerable uncertainty about how this event will develop.
Zhuge Zhaofang Data Research Center analyst Chen Xiao also holds a cautious attitude towards whether the acquisition will be successful. Chen Xiao believes that whether it can smoothly pass the filing review will play a key role in the success of this transaction. If it is found during the review that Blackstone is involved in monopoly activities during the acquisition process, the transaction may face a halt. On the one hand, due to strict scrutiny by relevant departments on "antitrust" issues; on the other hand, the capital markets are also experiencing turbulence, coupled with the fact that the progress of this transaction is not smooth. Overall, the success of Blackstone in acquiring SOHO still faces significant uncertainty.