BX - The Blackstone Group Inc.
| Previous Close | 46.50 |
| Open | 46.84 |
| Bid | 0.00 x 800 |
| Ask | 48.70 x 800 |
| Day's Range | 46.28 - 47.31 |
| 52 Week Range | 26.88 - 55.17 |
| Volume | 4,032,811 |
| Avg. Volume | 7,218,453 |
| Market Cap | 56.278B |
| Beta (3Y Monthly) | 1.55 |
| PE Ratio (TTM) | 32.50 |
| EPS (TTM) | 1.45 |
| Earnings Date | Oct 23, 2019 |
| Forward Dividend & Yield | 1.92 (4.08%) |
| Ex-Dividend Date | 2019-07-26 |
| 1y Target Est | 52.69 |
- Reuters
UPDATE 1-Unizo shares jump after Blackstone launches tender offer
Shares of Unizo Holdings Co Ltd jumped on Wednesday after U.S. private equity firm Blackstone Group Inc ratcheted up its pursuit of the Japanese hotel operator by launching a 5,000 yen-per-share tender offer. Unizo stock rose as much as 5.6% to 4,965 yen in early Tokyo trade after Blackstone announced its offer the previous day, doubling down on its $1.6 billion offer after the proposal was rebuffed by the hotelier. The Japanese firm said in a statement it had not decided how to respond to the tender offer and would consult with a special committee on how to proceed.
- Bloomberg
Blackstone, KKR Join Race for India’s Emami Cement
(Bloomberg) -- Blackstone Group Inc. and a rival consortium led by KKR & Co. are considering bids for the cement unit of Indian cosmetics to paper conglomerate Emami Group, according to people with knowledge of the matter.TPG Capital is also weighing a bid for Emami Cement Ltd. and could look for a local partner, said one of the people, who asked not to be identified as the discussions are private. KKR is in talks to team up with Nirma Ltd., a maker of detergents, the people said.Emami Group has picked Arpwood Capital Ltd. and Credit Suisse Group AG to manage the sale of the cement unit, seeking a valuation of about $1 billion, Bloomberg News has reported. The Kolkata-based conglomerate led by R. S. Agarwal and R.S. Goenka is joining tycoons including Anil Ambani and Subhash Chandra in selling assets to pare debt as a cash crunch in Indian markets increase funding costs.Deliberations are ongoing and the private equity firms could decide against a bid, the people said. Representatives for Blackstone and TPG declined to comment, while representatives for Emami Group and KKR said they do not comment on market speculation. A representative for Nirma didn’t immediately respond to requests for comment.Emami Cement runs three manufacturing plants in India and is setting up another one in Kalinganagar, Odisha, according to its website. The company has more than 50 branches across the country, its website shows.(Updates to add background on Emami Cement in last paragraph)To contact the reporters on this story: Baiju Kalesh in Mumbai at bkalesh@bloomberg.net;P R Sanjai in Mumbai at psanjai@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Sam Nagarajan at samnagarajan@bloomberg.net, Anto AntonyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
Unizo shares jump after Blackstone launches tender offer
Unizo stock rose as much as 5.6% to 4,965 yen in early Tokyo trade after Blackstone announced its offer the previous day, doubling down on its $1.6 billion offer after the proposal was rebuffed by the hotelier. The Japanese firm said in a statement it had not decided how to respond to the tender offer and would consult with a special committee on how to proceed. It said it had learned about the offer from a press release issued through PR Times but had not been contacted by Blackstone.
- Bloomberg
MGM Agrees to Sell Bellagio to Blackstone for $4.25 Billion
(Bloomberg) -- MGM Resorts International, pressured by investors to unload its remaining company-owned casinos, agreed to sell the Bellagio resort in Las Vegas to Blackstone Group for $4.25 billion and will continue to operate the property under a lease arrangement.The Las Vegas-based casino company also agreed to sell the Circus Circus property on the Strip, along with 47 adjoining acres, to real estate mogul Phil Ruffin for $825 million, according to a statement Tuesday.With the sales, MGM Resorts moves a step closer to becoming a landless casino company, marking a new era for the largest operator of casinos on the Las Vegas Strip. When all of its deals close, the company will have just two wholly owned properties, including the flagship MGM Grand, remaining under its ownership. The company is keeping a 5% stake in the Blackstone-led venture that’s buying Bellagio.“The casino industry is evolving and we figured the best use of our intellectual capital was to focus on sports, live entertainment and reduce leverage,” Jim Murren, MGM’s chairman and chief executive officer, said in an interview. “It’s very historic for a variety of reasons.”MGM has been restructuring under pressure from activist investors. The company has cut and reorganized management, and previously sold all but four of its wholly owned casinos to MGM Growth Properties Inc., a real estate investment trust it created three years ago. The REIT has an option to buy the MGM Springfield in Massachusetts.The price for Bellagio represents 17.3 times the initial annual rent of $245 million, MGM said. Bloomberg News previously reported Blackstone was in talks to buy and lease back the Bellagio and MGM Grand. The property is being purchased by the Blackstone Real Estate Investment Trust.MGM will use the proceeds to bolster its balance sheet and return capital to shareholders. Murren said the transactions will help the company target new growth opportunities, including one of the new integrated resource licenses in Japan and sports betting in the U.S. MGM has no plans to develop any more casinos in Las Vegas, he said.Earlier DealsRuffin, a real estate mogul raised in Wichita, Kansas, will pay $662.5 million in cash for Circus Circus. The $162.5 million balance will be in a note that’s due in 2024. The parties expected to deal to close in the fourth quarter. The resort has 2,300 employees and includes a 20-acre RV park and 37-acre festival grounds.Ruffin bought the Treasure Island casino from MGM for $746 million in 2009. The company then was trying to raise cash following the financial crisis and complete construction of its CityCenter project.He fixed up Treasure Island, once known for its daily pirate battles outside, adding a western-themed barbecue restaurant and other amenities aimed at Middle American guests. Earlier, he partnered with Donald Trump on the Trump International Hotel, a non-casino hotel and condo development on the Strip.Circus Circus, now more than 50 years old, was once a flagship property of publicly traded Circus Circus Enterprises. MGM ultimately acquired that company. The resort itself is located at the less-trafficked north end of the Strip.The sale of Bellagio will provide a benchmark value to attract bidders for MGM’s remaining real estate interests, Murren said, including the CityCenter properties that are co-owned with Dubai World, and the flagship MGM Grand.Murren also said he wasn’t concerned that Penn National Gaming Corp., another casino operator that had moved to a similar asset-light strategy, trades at a lower multiple of earnings than other casino companies. He said MGM’s assets make it unique.MGM Resorts enlisted Weil, Gotshal & Manges as its legal counsel, while PJT Partners and JPMorgan Chase & Co. served as financial advisers. Blackstone’s REIT used Citigroup Inc. and Morgan Stanley as its financial advisers. Simpson Thacher & Bartlett LLP, meanwhile, was its legal counsel.(Updates with advisers in last paragraph)To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- MarketWatch
MGM selling Circus Circus, huge stake in Bellagio
MGM Resorts International said late Tuesday it is selling its Circus Circus casino resort in Las Vegas and a huge interest in its Bellagio resort. MGM shares rose 0.5% after hours, following a 0.4% decline to end the session at $27.87. The company said it was entering a joint venture with Blackstone Group Inc.'s Real Estate Income Trust in a sale-leaseback deal for $4.25 billion, where MGM will have a 5% stake in the JV. The sale is expected to close by the end of the year. MGM also said it is selling Circus Circus for $825 million to an affiliate of Treasure Island owner Phil Ruffin. The deal is made up of $662.5 million in cash and a $162.5 million note due 2024.
- Business Wire
Blackstone Real Estate Income Trust to Acquire the Bellagio Real Estate from MGM Resorts International for $4.25 Billion in Sale-Leaseback Transaction
Blackstone Real Estate Income Trust (“BREIT”), and MGM Resorts International (“MGM Resorts”) (MGM) announced today that BREIT and MGM Resorts will form a 95%/5% BREIT-led joint venture to acquire the real estate assets of the Bellagio for $4.25 billion in a sale-leaseback transaction. As part of the transaction, MGM Resorts will lease the property from the joint venture and continue to manage, operate and be responsible for all aspects of the property on a day-to-day basis.
- Moody's
Clay Holdco B.V. -- Moody's assigns first-time B2 CFR to CRH Europe Distribution; stable outlook
Moody's Investors Service ("Moody's") has today assigned a B2 corporate family rating (CFR) and B2-PD probability of default rating (PDR) to Clay HoldCo B.V., a holding company of the Netherlands-based distributor of building materials CRH Europe Distribution ("CRH ED" or "company"). Moody's has also assigned B1 instrument ratings to the proposed EUR 965 million 1st lien senior secured term loan B (TLB) and EUR 180 million 1st lien senior secured revolving credit facility (RCF). Additionally, Moody's has assigned a Caa1 rating to the proposed EUR 248 million 2nd lien senior secured TL, also to be issued by Clay HoldCo B.V. The outlook on all aforementioned ratings is stable.
- American City Business Journals
Willis Tower moving forward with build-out of risky 'Catalog' project
The pricey five-story dining and entertainment experience aims to create a new neighborhood destination in a location where this has never before been tried.
- Reuters
UPDATE 2-Blackstone turns up heat on hotelier Unizo with tender offer
Private equity firm Blackstone Group said on Tuesday it would launch a tender offer for Unizo Holdings at 5,000 yen a share, doubling down on its $1.6 billion offer after the proposal was rebuffed by the Japanese hotel chain. The potential bid from one of the world's largest buyout funds marks another twist in the takeover saga surrounding the once-obscure hotelier, now seen as a test case for Prime Minister Shinzo Abe's push for greater transparency and corporate disclosure. Unizo last week rejected a buyout proposal from Blackstone as well as one from a "locally renowned" fund that it did not identify.
- Reuters
Blackstone turns up heat on hotelier Unizo with tender offer
Private equity firm Blackstone Group said on Tuesday it would launch a tender offer for Unizo Holdings at 5,000 yen a share, doubling down on its $1.6 billion offer after the proposal was rebuffed by the Japanese hotel chain. Unizo last week rejected a buyout proposal from Blackstone as well as one from a "locally renowned" fund that it did not identify. Prior to that, Unizo withdrew support for a white-knight bid from SoftBank-backed Fortress Investment Group.
- American City Business Journals
Fast-growing Zymergen grabs landmark former Chiron space
Zymergen — which has made the jump from an incubator to an 800-employee company in six years — will lease some 300,000 square feet in the former Chiron building in Emeryville.
- Zacks
Blackstone Group (BX) Dips More Than Broader Markets: What You Should Know
Blackstone Group (BX) closed the most recent trading day at $46.50, moving -1.29% from the previous trading session.
- Yahoo Finance
Steve Schwarzman: A wealth tax would make businesses up and leave
Billionaire private equity chief Stephen A. Schwarzman cited several reasons why he believes a wealth tax is a “terrible” idea.
- MarketWatch
Hilton Grand Vacation's stock surges after Bloomberg report of Apollo buyout bid
Shares of Hilton Grand Vacations Inc. rallied 6.4% in active afternoon trading Monday, after Bloomberg reported that private-equity firm Apollo Global Management Inc. made an offer to buy the timeshare company for $40 a share. That would represent a 23% premium to Friday's closing price of $32.64, and would be the highest price seen in the stock since June 2018. Trading volume reached 4.1 million shares, compared with the full-day average of about 1.2 million shares. Hilton Grand did not immediately respond to a request for comment. At $40 a share, Hilton Grand's market capitalization would be about $3.44 billion. In August, the New York Post had reported that Apollo could bid as much as $36 a share for Hilton Grand. Bloomberg's Monday report, which cited people familiar with the matter, said BlackStone Group Inc. also bid for Hilton Grand. The stock has rallied 31.6% year to date, while the S&P 500 has gained 18.4%.
- Benzinga
Hilton Grand Vacations Stock Jumps As Apollo Increases Bid
Apollo Global Management, LLC (NYSE: APO ) is reportedly seeking to acquire timeshare company Hilton Grand Vacations (NYSE: HGV ) for about $40 a share, Bloomberg reported Monday , citing people familiar ...
- Bloomberg
Apollo Offers About $40 Per Share for Hilton Grand
(Bloomberg) -- Apollo Global Management Inc. made a first-round offer for Hilton Grand Vacations Inc. valuing the timeshare resort operator at about $40 per share, according to people familiar with the matter.The Blackstone Group Inc. also bid for the Orlando, Florida-based company, said the people who asked to not be identified because the matter isn’t public.Hilton Grand Vacations’ shares rose to their highest level since June 2018, jumping as high as 10.3%. The shares were up 6.1% to $34.65 at 1:07 p.m. in New York trading, giving the company a market value of about $3 billion.Representatives for Apollo and Blackstone declined to comment. Hilton Grand Vacations didn’t respond to requests for comment.Elliott Management Corp. has built a position in Hilton Grand Vacations and was advocating for a sale prior to the company putting itself on the block, people familiar with the matter said last month.The company, with 55 resorts and more than 315,000 members, fell the most ever on Aug. 1 after lowering its forecast for earnings and sales, citing a lack of inventory in locations like Cabo San Lucas, Mexico and the Big Island of Hawaii.Apollo bought timeshare operator Diamond Resorts International Inc. for $2.2 billion in 2016.(Updates share price in third paragraph.)To contact the reporters on this story: Gillian Tan in New York at gtan129@bloomberg.net;Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Alan Goldstein at agoldstein5@bloomberg.net, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Barrons.com
Boeing Strips CEO of Chairman Role. Here’s What’s Next for the Stock.
Embattled Boeing CEO Dennis Muilenburg was stripped of the chairman title last week. Former GE aerospace executive David Calhoun is taking on the role.
- Financial Times
FirstFT: Today’s top stories
The proposed deal would give SoftBank more than a 50 per cent stake in the company, but it was unclear if the group — which is WeWork’s largest backer — would repurchase all of its outstanding stock.
- Financial Times
US Congress examines private equity role in surging healthcare costs
Sonji Wilkes from Englewood, Colorado, had taken care to ensure her health insurance was up to date in preparation for her baby’s arrival. Tom was born with severe haemophilia and had to be transferred for specialist care after he suffered heavy bleeding. Ms Wilkes later received a $50,000 bill because the hospital had subcontracted the neonatal intensive care unit to a third-party provider that was not covered by her insurance provider.
- Bloomberg
Elliott and Blackstone Enter Hostile Territory in Japan
(Bloomberg Opinion) -- A small $1.5 billion company is attracting the biggest movers in finance in what’s shaping up as the first high-profile foreign hostile takeover in Japan. If successful, it could wake up the sleepy $228 billion market of publicly listed real-estate companies.The attention is on Unizo Holdings Co., until recently an obscure developer and hotel operator. The company has a big chunk of its office rental business, which accounts for about 90% of operating income, in Tokyo, where the vacancy rate is as low as 2% and a decent 3.5% yield can be earned. The developer’s stock came alive in July following an unsolicited tender offer from Japan’s leading travel agency, HIS Co. Unizo looked for white knights to come to its rescue. Two appeared: Fortress Investment Group, a subsidiary of SoftBank Group Corp. that has invested about $100 billion in real-estate deals worldwide; and private-equity giant Blackstone Group Inc., which came in with a 25% premium to the Fortress bid.Meanwhile, perhaps smelling a good event-driven trade, Paul Singer’s Elliott Management Corp. began buying Unizo shares; the activist hedge fund is now the largest shareholder and has a stake of more than 13%. With all this activity, Unizo’s stock has soared 128%, and short-sellers have started circling.But Unizo may have only been playing for breathing room. Its board of directors has gone from full support of the would-be rescue to demanding extra terms. Embedded in the Fortress offer in mid-August, for example, is an understanding that employees would have discretion over how Unizo is run in the first two years but Fortress would take full control afterward. In late September, though, management decided that employees – not shareholders – would be the ultimate bosses. Under that acquisition guideline, a new owner will not be able to restructure or dissolve Unizo without the consent of employees. They will also determine the method of the fund’s exit – whether via buybacks, strategic sales or re-listing on the Tokyo Stock Exchange. Considering that restructuring is private equity’s bread and butter, it’s hard to see how any fund would be willing to agree to such terms. Elliott has taken its disappointment public. In its first open letter to management in Japan, the hedge fund asked pointedly why Unizo had such a change of heart. This marked a departure from the polite approach taken by foreign activist shareholders that has seemed to get things done in Japan. Elliott has spent about 16 billion yen ($148 million) for an average price of 3,654 yen per share on the Tokyo Stock Exchange, and will have to carry the paper loss for months if both the Fortress and Blackstone deals fall through. It may not be able to call an extraordinary general meeting until January, according to Travis Lundy, a special situations analyst who publishes on Smartkarma. Fortress has extended its offer to expire Thursday. If the foreigners stay in the game for control of Unizo, they could be in for a tough fight. They’re confronting a stubborn Japanese company so keen on independence that it doesn’t mind diluting its shareholders many times over. Originally an affiliate of Mizuho Financial Group Inc., Unizo issued new shares – annually, in recent years – to distance itself from the megabank. In 2011, Kyoritsu Co., an insurer affiliated with Mizuho, was Unizo’s largest owner with an 11.8% stake; by March, it was down to 4.3%.Unizo’s value is of the hidden-gem variety. With a net debt-to-Ebitda ratio of 14.7 times, it’s already heavily indebted, meaning the usual private-equity tactic of piling on debt to engineer returns won’t work. It’s trading at 1.4 times book value, not cheap by Japanese standards.But under Japan’s accounting rules, developers don’t record the rise and fall of the value of their land banks or buildings. As a result, Unizo’s net asset value, once we account for a valuation gain of 220 billion yen suggested by management, would come to 7,857 yen per share. That’s more than twice the book value and makes even Blackstone’s offer look like a great deal – but only if Unizo allows the funds to divest assets and pay off debt.Prime Minister Shinzo Abe has nudged Japan Inc. to improve shareholder returns since 2013, but enthusiasm for better corporate governance has evaporated over the last year. Japan has hundreds of listed real-estate companies with hidden gems and weak valuations. Billions can be unleashed from asset spin-offs. The time for politeness may be over.To contact the author of this story: Shuli Ren at sren38@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Bloomberg
Blackstone Held Talks With Citadel About Buying Stake
(Bloomberg) -- Blackstone Group Inc. held talks about buying a stake in Ken Griffin’s flagship hedge fund, people familiar with the matter said.The Blackstone division that invests in alternative asset managers led the talks with Griffin’s Citadel, the people said. Nothing came of the discussions, which are now over.“Citadel is a terrific firm, but we are not in discussions with them at this time,” a Blackstone spokeswoman said.In statement issued Saturday to Bloomberg, Citadel spokesman Zia Ahmed said: “Given the value that we have delivered for our partners and stakeholders over nearly 30 years, a number of investors have expressed interest in our management company.”The Wall Street Journal earlier reported the news.Citadel is comprised of its hedge fund business, which has $32 billion in assets under management, and thriving securities-trading operations. Citadel executives have estimated the hedge fund to be worth between $5 billion and $7 billion, the Journal reported.Blackstone, which managed $545 billion in assets as of June, has a group that invests in other investment firms. In August, it bought as much as 15% of European private equity firm BC Partners in return for about 500 million euros ($552 million) of investment.Griffin is worth an estimated $9.8 billion, according to the Bloomberg Billionaires Index. Over the past year, he’s made headlines by making a slew of audacious real estate deals, including paying a record $238 million for a penthouse at 220 Central Park South.(Adds comment from Citadel in sixth paragraph.)\--With assistance from Hailey Waller.To contact the reporter on this story: Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Matthew G. Miller, James LuddenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- PR Newswire
Blackstone Mortgage Trust Announces Third Quarter 2019 Earnings Release and Conference Call
NEW YORK, Oct. 11, 2019 /PRNewswire/ -- Blackstone Mortgage Trust, Inc. (BXMT) today announced that it will publish its third quarter 2019 earnings presentation on its website at www.bxmt.com and file its Form 10-Q after market close on Wednesday, October 23, 2019. The company will also host a conference call to review results on Thursday, October 24, 2019 at 9:00 a.m. ET. The conference call can be accessed by dialing +1 (888) 268-4178 (U.S. domestic) or +1 (617) 597-5494 (International) with the passcode 245-054-61# or by webcast at www.bxmt.com (listen only).
- American City Business Journals
Real Estate Notebook: Office rents in metro Atlanta jump 4%
Rents for the city’s best office space, referred to as class A properties, have reached $30.50 per foot, a more than 4% increase from last year, according to new data from real estate services firm Newmark Knight Frank. Average asking rents for all Atlanta office space reached a new record of $27.66 per foot. It was the fourth consecutive quarter above $27 per square foot.
- Yahoo Finance
Steve Schwarzman: Capitalism isn't broken, but the US education system is
The founder of the world's largest private equity firm also calls on raising the minimum wage.
