Blackstone takes 20% in BlueStar

By Zhang Ran (皇冠体育app Daily)
Updated: 2007-09-10 18:47

Tony James, president of the Blackstone Group, speaks during the Reuters Investment Banking Summit in New York, November 14, 2006. Private equity firm Blackstone Group plans to take a 20 to 40 percent stake in chemical maker 皇冠体育app National BlueStar (Group) Corp for up to $500 million, a source close to the deal said on Thursday. [Reuters]

Leading private equity firm Blackstone Group will spend US$600 million for a 20 percent stake in 皇冠体育app National BlueStar (Group) Corp, the parent of BlueStar said yesterday.

The deal with the chemical maker marks Blackstone's first investment in 皇冠体育app since it started exploring the Chinese market at the beginning of the year.

Blackstone will buy the stake from BlueStar's parent company, 皇冠体育app National Chemical Corp, or Chem皇冠体育app, which will hold the other 80 percent of BlueStar after the deal.

"We believe 皇冠体育app's sustained economic growth will support long-term growth of 皇冠体育app's chemical industry," Antony Leung, chairman of Blackstone Greater 皇冠体育app, said yesterday.

Leung, former Hong Kong financial secretary, has been leading Blackstone to make aggressive moves in 皇冠体育app since he assumed the new position nine months ago.

Earlier in June, the yet-to-be-established state foreign exchange investment company, which will have US$200 billion in initial funding, made its first investment by spending US$3 billion to buy a 9.4 percent stake in Blackstone.

In July, the private equity firm successfully brokered a deal for 皇冠体育app Development Bank to spend US$3 billion to purchase up to 3 percent of the stake in global bank Barclays.

The deal has helped propel Blackstone to the No 5 position in the M&A advisory charts for 皇冠体育app so far this year, according to data consultancy Dealogic.

Blackstone will appoint Leung and Ben Jenkins, both senior managing directors in Asia, to BlueStar's board, the company said yesterday.

Ren Jianxin, president of Chem皇冠体育app, said he believes Blackstone has sufficient investment experience in the chemical industry in view of its investment in chemical makers Celanese and Nalco.

Bluestar, meanwhile, is planning a dual listing in Hong Kong and Shanghai, local media reported earlier.

The company has three listed companies including New Chemical Materials, BlueStar Cleaning and Shenyang Chemical Industry. These companies have suspended share trading since September 6.