Comprehensive M&A data with integrated detailed company information
Wanda Hotel takes over two assets from Dalian Wanda
Posted on Thursday, 10 August 2017 09:44
Shares in Wanda Hotel popped on news of a restructuring programme which includes taking over two property and tourism assets from Dalian Wanda founder and chairman Wang Jianlin for a total CNY 7.05 billion (USD 1.05 billion).
The internal group re-shuffle comes just a month after the Chinese tycoon signed off on a sale of a clutch of hotels and theme parks to Sunac China in order to pay off loans.
He is now turning Wanda Hotel into a “strategic platform” focused on designing, operating and managing tourism accommodation and amusement sites comprising rides, games and other entertainment activities.
An indirect, wholly-owned subsidiary of Wang will inject its entire equity interest in theme park developer Wanda Culture Travel Innovation into Wanda Hotel for CNY 6.30 billion.
Separately, the chairman’s majority-held vehicle Dalian Wanda Commercial Properties is transferring hotel designer, constructor and operator Wanda Hotel Management for CNY 750.00 million.
Wanda Hotel, as it currently stands, is a Bermuda-incorporated entity mainly involved in property development, investment and management.
However, in order to focus on theme parks and hotels, the group is offloading its equity interests in four holding companies of projects in four different countries – Australia, the UK, China and the US – to Wang’s main real estate arm named above.
While Dalian Wanda is remaining quiet about its motives behind the restructuring, the media is pinpointing the fact the government has recently put the conglomerate under significant scrutiny.
Kingston Lin King-ham of AMTD told the South China Morning Post – before the official announcement – the group has a very high gearing ratio so it may look to sell overseas assets to pay down debt.
At the moment the deals are merely at the non-binding stage and a price tag for the divestment is not yet known as it will be based on the net asset value of the four project companies.
© Zephus Ltd