Blackstone's US$4 billion New World talks stall over control, Bloomberg News reports

Talks between Blackstone and New World Development (0017) 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 US$2.5 billion in a special-purpose ​vehicle that would make it New World's ⁠largest shareholder, while the Cheng family ​would contribute US$1 billion-US$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 percent ​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.

Reuters