New World Development $4 Billion Tie-Up with Blackstone

cancelled

Blackstone Inc. proposed a $4 billion tie-up with New World Development Co., involving a significant investment and restructuring plan. The deal included Blackstone becoming the largest shareholder by injecting about $2.5 billion into a special-purpose vehicle, while the Cheng family would contribute $1 billion to $1.5 billion. The deal negotiations stalled and eventually Blackstone walked away after New World refused to hand over control. The competing groups are pressing New World to resolve about HK$70 billion of liabilities tied to a long-term rental agreement for a shopping mall at the Hong Kong airport as a pre-requisite for any deal.