Dalian Wanda Group selling chunk of its assets for $9.3B

CHINA-WANDA-ECONOMY

Dalian Wanda Group, headed by Chinese billionaire Wang Jianlin, says it has reached a landmark deal to sell its theme parks business to Sunac China for $9.3 billion.

Sunac will buy 76 hotels from Wanda through a unit and will purchase a 91 percent stake of 13 cultural and tourism projects, with both sides planning to sign a detailed agreement before July 31, according to a statement.

The agreement - which is said to be the second-biggest real estate deal ever in China - signals a major deescalation of Wanda's once mighty ambitions in the theme park sector.

Only three of Wanda's planned parks have been completed to date.

Wanda, headed by one of China's richest men, Wang Jianlin, had been one of the most acquisitive companies overseas, spending billions on a range of United States entertainment properties.

The deal will see Dalian Wanda Commercial Properties Co.


"Selling assets, which is the last resort for big firms like Wanda, means that Wanda is running out of options to raise fund through normal financing channels", said Ivan Han, Shanghai-based senior analyst with financial information provider Morning Whistle.

Some analysts believe that, having delisted from the Hong Kong market previous year, a smaller debt pile will strengthen the argument for relisting in mainland China.

With the latest deal, Sun targeted assets from fellow billionaire Wang Jianlin (王健林), who was among the most acquisitive Chinese tycoons up till previous year.

Sunac has emerged as the most acquisitive Chinese developer in the past 12 months and its property holdings have expanded rapidly, from four cities in 2011 to 44 previous year.

"Through this asset transfer, Wanda Commercial's debt ratio will be greatly reduced, all the proceeds will be used to repay loans".

The properties will continue to operate under the Wanda brand, with the company managing the design and quality control of the construction projects, it said.

Share

Related News

  • 'I was devastated': Blac Chyna speaks about revenge porn ordeal

    'I was devastated': Blac Chyna speaks about revenge porn ordeal

    The star said Kardashian's family, including Kim Kardashian , hasn't reached out to her since Kardashian's rant. Once inside the court, Chyna was spotted walking through the hallway arm in arm with Bloom and Mosley.
    Surface of Mars 'more uninhabitable' than previously thought

    Surface of Mars 'more uninhabitable' than previously thought

    If life could thrive in perchlorate-rich brines, then aliens might be thriving in the damp patches on Mars . Other perchlorates found on Mars had a similar bactericidal effect.
    Hamilton leads Verstappen as McLaren starts strongly in Austria

    Hamilton leads Verstappen as McLaren starts strongly in Austria

    Vettel expects Ferrari to be closer to the front this weekend but still believes Mercedes to hold an advantage. The balance of the auto feels good and we'll fine tune the setup some more tonight to be ready for qualifying.
  • Microsoft to reorganize sales and marketing teams

    Microsoft to reorganize sales and marketing teams

    The layoffs , which will be needed due to redundancies in the reorganized sales division, will be "major" according to reports. Bloomberg also reported a similar thing about Microsoft earlier this week and this new report is in line with that.
    Cinemas shut across TN over local body tax

    Cinemas shut across TN over local body tax

    Besides the local tax, a GST of 18 per cent has been fixed for tickets priced below Rs 100 and 28 per cent for those above Rs 100. He said action will also be taken if additional rates were charged for commodities exempted from the GST.
    Auto  drives into pedestrians in Boston, injuring nine people

    Auto drives into pedestrians in Boston, injuring nine people

    Procopio says based on the preliminary investigation, "there is no information that suggests the crash was intentional". Two law enforcement sources told CNN the incident is being treated as an accident, not an act of terrorism.
  • Tillerson Says Russia Must Restore Ukraine Territory, or Sanctions Stay

    Under the Obama administration, the USA had taken a hands-off approach to Minsk, allowing the Europeans to take the lead. Poroshenko hailed United States involvement and reiterated Tillerson's commitment to seeking a negotiated peace deal.
    Merkel criticizes Trump trade policy before G20

    Merkel criticizes Trump trade policy before G20

    Trump is facing his first meeting with Russian President Vladimir Putin along the sidelines of an global summit in Germany. On Monday, presenting her party's election platform, Merkel predicted "a whole series of thorny issues" at the G20.
    Sartaj Aziz meets US Senate delegation

    Sartaj Aziz meets US Senate delegation

    The US senators also praised the economic turnaround, as manifested by investors' interest and confidence in Pakistan. Aziz also raised concern over the inhumane activities of Indian forces in occupied Kashmir.
  • Lalu Yadav, Rabri Yadav's properties raided by CBI, case filed. Here's why

    Lalu Yadav, Rabri Yadav's properties raided by CBI, case filed. Here's why

    Sushil Modi yesterday said Lalu Prasad Yadav and his family members have acquired more than 125 properties in last 12 years.
    Federer Passes Connors for All-Time Wimbledon Win Record

    Federer Passes Connors for All-Time Wimbledon Win Record

    While the 47th-ranked Slovakian emerged for the second set, he lasted just two more games before calling it quits. I was just getting more and more eager for this tournament to start because there were a lot of days in a row".
    Launch fails for Chinese heavy-lift carrier rocket

    Launch fails for Chinese heavy-lift carrier rocket

    The blast which was telecast live initially appeared successful as the rocket blasted off seemingly without problem. It was also not clear whether the rocket, which was carrying a communication satellite, had entered its orbit.