Stocks News
- BlueStar units' share trading halted
Date: 7-Sep-2007 Sources: (Shenzhen Daily)
CHINA National BlueStar Group Corp.'s three publicly traded units suspended trading in their shares Thursday, saying their parent is in talks on a major issue.
The Daily Telegraph reported Thursday from Dalian, in northeastern China, that Blackstone Group was close to an agreement to buy a stake in BlueStar, a Beijing-based chemicals maker. An announcement is likely within days, the newspaper said, citing people familiar with the talks.
Blue Star Cleaning Co., Shenyang Chemical Industry Co. and Blue Star New Chemical Material Co. announced the suspensions in separate filings to the Shanghai and Shenzhen stock exchanges. BlueStar is in talks with a 'relevant party, they said.
The South China Morning Post said June 20 that Blackstone was in talks to buy 30 percent of BlueStar for about US$500 million. The purchase would mark the U.S. buyout firm's first big transaction in China after the government agreed to take a 10 percent stake in Blackstone's initial public offering, the newspaper said.
BlueStar had planned to raise US$300 million this year in a Hong Kong initial public offering. The plan was scrapped after investment bankers walked away from the transaction because of the poor financial performance of the company, the newspaper said.
Blue Star Cleaning shares jumped by the 10 percent daily limit to 18.83 yuan (US$2.49) in Shenzhen on Wednesday. Shenyang Chemical rose by the 10 percent daily limit to 16.63 yuan in Shenzhen. Blue Star New Chemical gained less than 1 percent to 58.87 yuan in Shanghai.
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