The Blackstone Group is reportedly in discussions to buy a 20 percent to 40 percent stake in Chinese state-owned petrochemicals company, China National BlueStar Group.
Private equity fund managers in China value such an investment at about $400 million (€294 million), according to The Wall Street Journal.
Blackstone did not return a request for comment, though BlueStar did confirm in a statement on 21 June that it was in talks with unidentified buyers for “strategic cooperation”.
BlueStar is planning an initial public offering to help it raise funds to expand into high-growth areas.
A Chinese analyst told the Journal the deal may be an effort to soothe concerns in China about Blackstone’s falling share price.
The Chinese government invested $3 billion in Blackstone’s management company prior to its much vaunted 22 June float, only to see Blackstone’s share price fall below its IPO-price Friday to $29.27. The Chinese media reported at the time that China’s State Investment Company, which is charged with investing the country’s massive foreign currency reserves, has suffered a resulting $3.3 million loss on paper.
Blackstone is also said to be interested in acquiring a stake in Minsheng Banking Corp., China’s only privately-owned bank.