Blackstone offers $322m for property developer Tysan

According to a regulatory filing, Blackstone is willing to pay HK$2.86 per share, which is about 10% higher than the closing price of HK$2.60 on the previous trading day. After the announcement, Tysan shares closed up 6.5% at HK$2.77 a share on Monday.

The investment will be made from the Blackstone Real Estate Partners Asia fund, the GP's first pan-Asia property fund, which launched in April.

The share offer is valued at approximately HK$2.49 billion. There are also options outstanding entitling the holders to subscribe for 2 million shares at HK$1.46 apiece. Blackstone is offering to pay HK$1.40 for the cancellation of each option for a total of HK$2.8 million.

Tysan expanded into the China property market in 1997 under the name Duncan Properties, which has built residential properties in Shanghai and Tianjin. It also undertakes property management in these cities.

Tysan operates in three Hong Kong-based segments - machinery leasing and trading, foundation piling and engineering and building construction. As part of a restructuring, these companies will be sold.

Separately, Tysan will buy out a 20% interest in its Tianjin property development company for HK$129.4 million to make it a wholly-owned subsidiary.

Blackstone is engaged in real-estate development in Shanghai, Dalian, Nantong and Wuhan. It said the deal is "an opportunity to enlarge its footprint in the real estate market" in China.

The firm is targeting $4 billion for Blackstone Real Estate Partners Asia and reached a first close on $1.5 billion in June. The vehicle will focus on China, India, Australia and Japan.

Barclays is advising Blackstone on the Tysan bid.

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• Topics
• Greater China
• Real estate
• Real estate
• Real estate
• Buyouts
• China
• The Blackstone Group
• Real estate
• buyout