SOHO China's "selling" has failed again, and Pan Shiyi, who has been "disappearing" for many days, is in the America

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"Don't let Pan Shiyi run away" has been mentioned by the market from time to time since 2015. Now it seems that Pan Shiyi's "running" is not so simple.

On September 10, SOHO China (00410. HK) announced that Blackstone Group decided not to make an offer to acquire the company's equity. On September 13, SOHO China fell sharply at the opening, with a decline of 40%.

As of the closing, SOHO China's share price fell 34.57% to 2.29 Hong Kong dollars per share, with a total market value of 11.906 billion Hong Kong dollars, which evaporated 6.29 billion Hong Kong dollars in one day.

SOHO China's 20 billion "selling" plan failed

On September 10, SOHO China announced that Blackstone Group decided not to make an offer to acquire the company's equity.

The announcement said that, in view of the previous offer of Goldman Sachs to acquire all the issued shares of the Company on behalf of Blackstone Group, in view of the lack of progress in meeting the preconditions, all parties agreed that the preconditions could not be met on or before the deadline, and all parties agreed not to postpone the deadline. In order to relieve the Company's continuing obligations under the Takeover Code and maintain an orderly stock market, all parties decided and unanimously agreed not to make an offer after consulting the executive.

On June 16 this year, Blackstone Group officially issued a comprehensive takeover offer to invest in SOHO China Co., Ltd. to obtain its controlling interest. The purchase price was HK $5 per share, with a total amount of HK $23.658 billion (about RMB19.62 billion).

After the completion of the transaction, SOHO China continued to be listed on the Hong Kong Stock Exchange. Pan Shiyi and Zhang Xin will retire from the board of directors of SOHO China and no longer serve as executive directors. Blackstone Group will nominate new executive directors to the board of directors.

On August 6, SOHO China announced that the transaction with Blackstone Group was officially filed for review by the Market Supervision Administration.

The announcement shows that on August 3, Two Cities Master Holdings II Limited, a subsidiary of Blackstone, the offeror, received the notice issued by the State Administration of Market Supervision of the People's Republic of China, and formally filed and reviewed the application submitted by the offeror in accordance with the Anti monopoly Law of the People's Republic of China.

Now, with SOHO China's announcement, this transaction of nearly 20 billion yuan has failed.

20% reduction in transaction value

Still adhere to cash out

This is not the first time that SOHO China has tried to sell itself.

As early as March 2020, there was news that Blackstone Group was negotiating with SOHO China on privatization, with a transaction value of US $4 billion (about 25.8 billion yuan). On the evening of March 11, 2020, SOHO China announced that the company was negotiating with overseas financial investors to explore the possibility of strategic cooperation, which may lead to a comprehensive offer of all the issued shares of the company.

After the news, SOHO China's share price soared by 40% immediately. However, since then, Blackstone Group has given up the acquisition, and the share price of SOHO China has also declined all the way.

After more than a year, Pan Shiyi decided to sell SOHO China to Blackstone. However, the price of 19.6 billion yuan has shrunk by more than 20% compared with 25.8 billion yuan a year ago, which shows Pan Shiyi's strong desire to cash out.

From 2014 to 2019, SOHO China has sold 37 billion yuan of assets:

At the beginning of 2014, SOHO China priced 5.23 billion yuan Financial Street The two property projects of Helen Square and Jing'an Square were sold;

In September 2014, SOHO China sold about 100000 square meters of property in Sky SOHO to Ctrip Holdings at a price of 3.05 billion yuan;

In 2015, SOHO China sold its 50% interest in Plot 8-1 of Shanghai Bund International Financial Center to Fosun Group;

In 2016, SOHO China sold SOHO Century Plaza in Shanghai to Guohua Life Insurance for a consideration of 3.22 billion yuan;

In 2017, SOHO China sold the remaining properties of Hongkou SOHO and Lingkong SOHO in Shanghai with 8.58 billion yuan;

In 2019, SOHO China announced that it would sell 13 office property projects in Beijing and Shanghai for 7.8 billion yuan, including Beijing Wangjing SOHO, Galaxy SOHO, Jianwai SOHO, Shanghai SOHO Donghai Plaza and SOHO Zhongshan Plaza; In September of the same year, SOHO China announced to sell the asset package consisting of 2583 underground parking spaces for 9 commercial projects in Beijing at a price of 761 million yuan.

Pan Shiyi and His Wife Appear at the US Open

In 1995, Pan Shiyi and Zhang Xin founded SOHO China and went public on the Hong Kong Stock Exchange in 2007, gradually growing into the largest Grade A office building developer in China.

The turning point occurred in 2015. Zhang Xin said that she would not invest in real estate overseas because multiple rounds of quantitative easing policies have made the price of overseas assets very expensive. SOHO China will not further purchase land, but will focus on leasing of existing assets.

Since then, SOHO China has become a "rent collection" company. But SOHO China's life is not easy just by collecting rent.

In 2020, the COVID-19 epidemic will lead to an increase in the vacancy rate of office buildings, which will significantly impact SOHO China. The company's annual operating revenue will be 2.192 billion yuan, an increase of about 19% year on year; The net profit attributable to the parent company was 535.6 million yuan, a year-on-year decrease of 59.77%.

In the first half of 2021, SOHO China will achieve an operating revenue of 805 million yuan, a year-on-year decrease of 45%; The net profit attributable to the parent company was 340 million yuan, up 67% year on year.

It is worth noting that in 2021, the average rental rate of SOHO China's investment properties with stable operations in Beijing and Shanghai has recovered from 78% to 90%, and the rental rate of Lize SOHO, which was recently completed and delivered, has reached about 74%, but its revenue is still declining significantly. In this regard, some insiders pointed out that this shows that SOHO China's "price for volume" phenomenon is relatively obvious.

Although SOHO China's "selling" incident has attracted continuous attention online, Pan Shiyi has not appeared publicly for a long time.

However, on September 11, the second day after SOHO China announced that the "selling" transaction had failed again, Pan Shiyi and his wife Zhang Xin appeared on the stand of the 2021 US Open women's singles final in the early morning of September 12, Beijing time. The CCTV sports channel showed that they were sitting side by side, looking solemn.