HONG KONG (Reuters) -Shares and bonds of Hong Kong property developer New World Development surged on Thursday after a media report on a potential take-private deal.
Financial news provider Octus reported on Wednesday the developer, along with its controlling Cheng family, has been in discussions with U.S. private equity firm Blackstone regarding a financing deal of up to $2.5 billion, which could result in a joint take-private offer.
The discussions, which could involve preferred or ordinary equity, are in the early stages and subject to change, Octus reported, citing sources.
In response, New World said in a filing late in the trading session that it had not been approached by any person, including the controlling shareholder and Blackstone, in relation to any offer for its shares.
Its shares, with a market capitalisation of HK$18 billion ($2.29 billion), closed up 10.2%, after paring gains of 20% earlier in the session. Its January 2027 dollar bond was bid at 77.99 cents on the dollar as of 0813 GMT, up from 74.3 cents on Wednesday, according to Duration Finance.
Blackstone could not be reached for comment.
In late June, New World closed an $11.2 billion loan refinancing package, one of the largest yet in Hong Kong, designed to bring the company back from the brink of default.
($1 = 7.8495 Hong Kong dollars)
(Reporting by Clare Jim; Editing by Muralikumar Anantharaman, Christopher Cushing)
