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China's State Investment Company to buy stake in Blackstone

(chinadaily.com.cn)
Updated: 2007-05-21 09:56

The soon to be established state foreign exchange investment company (State Investment Company) in China and The Blackstone Group LP ("Blackstone") announced Monday that the State Investment Company has agreed to make a $3 billion investment in Blackstone in the form of non-voting common units.

Lou Jiwei, head of the working group of the State Investment Company, said: "We are very pleased to be able to make the State Investment Company's very first investment in such a well-respected firm as Blackstone."

The purchase price per common unit will be 95.5% of the public offering price in Blackstone's planned initial public offering. The number of non-voting common units purchased by the State Investment Company will be reduced if necessary so that the State Investment Company's equity interest in Blackstone immediately following the planned initial public offering remains under 10%. The State Investment Company has agreed to hold its investment in Blackstone for at least four years.

Stephen A. Schwarzman, chairman, chief executive officer and co-founder of Blackstone, said: "We are pleased to welcome the State Investment Company as an equity owner of our firm. We are proud to be part of such a significant transaction for both of our organizations."

The $3 billion sale of non-voting common units to State Investment Company will close concurrently with Blackstone's planned $4 billion initial public offering.



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