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Wanda lodges stake transfer deal involving Wanda Hotel
Posted on Tuesday, 05 December 2017 07:34
The Chinese business magnate behind Dalian Wanda Group is taking direct control of a 65.0 per cent stake in Wanda Hotel Development worth HKD 3.67 billion (USD 469.78 million) in order to boost liquidity.
Parent company Wanda Commercial Properties Overseas is handing over 3.06 billion shares at a price of HKD 1.20 apiece to Wang Jianlin’s wholly-owned subsidiary Wanda Investment Holding.
Given that this new entity belongs to Wang, the ultimate controlling shareholder of the listed group will be unchanged both before and after the proposed transfer due no later than 31st January 2018.
The reorganisation is part of an ongoing restructuring that has included the company acquiring the tourism accommodation operating business of its sister entities within the overall Wanda group for HKD 878.00 million.
Liu Feifan, a property analyst at Guotai Junan, told the South China Morning Post that one thing is certain: Wanda Hotel is now Wang’s only Hong Kong-listed platform and as such its importance will continue to increase.
Earlier this year the government cracked down on the group of companies’ aggressive overseas acquisition spree by introducing controls on sectors such as film, entertainment, hotels and sport.
Recently, Wanda has undertaken a series of fire sales, including offloading a clutch of hotels and real estate to two rival developers, Sunac and Guangzhou R&F, in July in order to pay down debt.
Dennis Lee, an associate director at S&P Global, told the Financial Times the most recent asset transfer should boost Wanda Commercial’s liquidity and help it resolve offshore refinancing issues.
At a value of HKD 3.67 billion, this reorganisation is by no means the largest announced by a Hong Kong-listed company so far this year, according to Zephyr, the M&A database published by Bureau van Dijk.
However, Zephyr shows the deal, which puts more of the Wanda group’s businesses directly under Wang’s control, is one of the top 50 by value.
© Zephus Ltd