New World Development Surges on Report of Take-Private Talks with Blackstone

Hong Kong property developer New World Development's shares and bonds surged on a report that the company and its controlling Cheng family are in talks with Blackstone for a potential take-private deal. The discussions involve a financing deal of up to $2.5 billion and could result in a joint take-private offer. New World denied being approached by anyone, including Blackstone, regarding an offer for its shares.

Shares of Hong Kong property developer New World Development surged on Thursday following a media report on potential take-private deal talks with U.S. private equity firm Blackstone. The report, published by financial news provider Octus, indicated that discussions are underway between New World and its controlling Cheng family, and Blackstone, regarding a potential financing deal worth up to $2.5 billion. The deal could include preferred or ordinary equity and potentially culminate in a joint take-private offer [1].

As of 0246 GMT, New World's shares gained 11% after jumping as much as 16% earlier in the trading session. The company, with a market capitalization of HK$18.2 billion ($2.32 billion), has been experiencing financial difficulties and has been in talks with various parties to secure financing. In late June, New World closed an $11.2 billion loan refinancing package, one of the largest ever in Hong Kong, designed to bring the company back from the brink of default [2].

New World did not immediately respond to a Reuters request for comment, while Blackstone could not be reached for comment. The company's controlling Cheng family has been negotiating with Blackstone regarding the potential financing deal, which could involve preferred or ordinary shares and ultimately lead to a privatization offer jointly proposed by the Cheng family and Blackstone [3].

The report comes at a time when New World is facing significant challenges, including a years-long property slump in Hong Kong and mainland China. The company's debt burden has raised concerns among investors, who have become increasingly skeptical of its ability to manage its debt [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TZ052:0-hong-kong-s-new-world-shares-surge-on-report-of-take-private-deal-talks/
[2] https://www.bloomberg.com/news/articles/2025-08-07/new-world-shares-bonds-jump-after-report-on-financing-talks
[3] https://www.aastocks.com/en/stocks/news/aafn-con/NOW.1459239/popular-news/AAFN