This article is from: srnnews.com
March 4 (Reuters) – Talks between Blackstone and New World Development have stalled as the Cheng family resists giving up control of the Hong Kong property developer, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The New York-based private equity firm proposed investing about $2.5 billion in a special-purpose vehicle that would make it New World’s largest shareholder, while the Cheng family would contribute $1 billion-$1.5 billion, the report said.
Discussions have slowed as the family explores alternatives that would bring in capital without surrendering control, the report added.
Reuters could not immediately verify the report. Blackstone and New World Development also did not immediately respond to Reuters’ request for comment.
New World is controlled by the Cheng family, one of Hong Kong’s wealthiest dynasties. Through their private conglomerate, Chow Tai Fook Enterprises (CTFE), the family owns 45.24% of the developer, LSEG data shows.
The Cheng family’s grip on New World has long been central to the group’s strategy. The company, the most heavily indebted among its peers, has been seeking to refinance debt and bolster liquidity as Hong Kong’s property sector remains under strain from tighter credit conditions and a weak office market.
(Reporting by Mihika Sharma in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)
Brought to you by www.srnnews.com
