Skadden wins Chinese govt’s Blackstone bid

Skadden Arps Slate Meagher & Flom advised the Chinese government on its investment in private equity house Blackstone Group.

The Skadden team, led by Beijing M&A partner Jon Christianson, advised the Chinese government on its $3bn (£1.51bn) placement with the group ahead of Blackstone’s planned IPO, which is expected in mid-June.

The investment is said to be part of the Chinese government’s determination to earn higher returns on its $1.2tr (£604.52bn) foreign exchange reserves held in US treasury bonds and other government debt at present.

After the investment Blackstone’s IPO will nearly double in size, from $4.5bn (£2.27bn) to $7.8bn (£3.93bn).

Shares in the IPO will be priced at $29-$31 (£15-£16), valuing Blackstone at $33.6bn (£16.93bn). The Chinese government will own no more than 10 per cent of the shares.

Skadden declined to comment on the transaction.