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Yonghui Superstores invests in Wanda Commercial
Posted on Wednesday, 05 December 2018 13:16
Yonghui Superstores is acquiring a 1.5 per cent stake in Dalian Wanda Commercial Management (DWCMG) from Dalian Yifang for CNY 3.53 billion (USD 515.87 million).

The business in question is a real estate development and commercial property holding company that was admitted to the Hong Kong bourse in 2014 and which delisted itself in September 2016.

It had 235 urban complexes – integrating retail, leisure, hotels and residential - in Beijing, Shanghai, Chengdu and other cities in China, as of 2017.

Wanda Commercial was originally meant to return to the A-share market on the second anniversary of the delisting from Hong Kong, but it has not yet been completed.

According to the statement, the company generated revenue of CNY 51.80 billion and booked net profit of CNY 15.80 billion in the period from January to October 2018.

Tencent, Suning, JD.com and Sunac China bought a 14.0 per cent stake in Wanda Commercial, then known as Dalian Wanda Commercial Properties, for CNY 34.00 billion earlier this year.

Yonghui Superstores noted the impact of the foreign investment - made at CNY 52.00 apiece - on future financials and operating results will mainly be due to an increase in bank loans and corresponding rise in financial expenses.

In a concurrent deal, the group is paring its 46.6 per cent stake in Yonghui Yunchuang Technology by selling a 20.0 per cent equity interest for CNY 393.68 million.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 5,714 minority stake deals announced so far this calendar year that target companies incorporated in China.

When discounting those featuring private equity, venture capital and development capital investment, there have been 3,088 equity interest purchases.

Yonghui Superstores’ acquisition of 1.5 per cent in Dalian Wanda is among the top 30 by value, Zephyr shows.

© Zephus Ltd