Blackstone Spies a Gem Amid the Virus Rubble

The world’s biggest private equity fund is making its boldest bet on China. Blackstone Group Inc.’s planned $4 billion offer for Hong Kong-listed property company Soho China Ltd. is cheap enough to ensure that the deal is a winner, even amid an economy that’s been ravaged by attempts to contain the coronavirus.

Blackstone is bidding HK$6 per share to take the owner of office buildings in Beijing and Shanghai private, according to a Reuters report Tuesday. That’s more than double the stock’s HK$2.98 closing price Monday. Soho China shares surged 38% after the report, before being halted from trading at the company’s request pending an announcement under the takeovers code. Its HK$21.3 billion ($2.74 billion) market capitalization on suspension is still a third below Blackstone’s offer.