Wanda Hotel to buy $1 bln of assets from Wang-controlled businesses

Wanda Hotel Development

10/08/2017 02:20

HONG KONG, Aug 10 (Reuters) - Wanda Hotel Development Co Ltd 
 0169.HK , a unit of Chinese conglomerate Dalian Wanda Group led 
by Wang Jianlin, said it would buy assets worth over 7 billion 
yuan ($1.05 billion) from Wang-controlled companies as part of a 
restructuring. 
    The Hong Kong-listed company said it would buy the entire 
equity interest in theme park operator Wanda Culture Travel 
Innovation Group Co Ltd from Wang's Beijing Wanda Culture 
Industry Group Co Ltd for 6.3 billion yuan. 
    The deal would be settled either in cash or through the 
issue of shares or convertible bonds, it added.  
    It will also buy hotel operator Wanda Hotel Management (Hong 
Kong) Co Ltd from Wang's Dalian Wanda Commercial Properties Co 
Ltd for 750 million yuan in cash, it said in a filing to the 
Hong Kong bourse late on Wednesday. 
    Wanda Hotel said it would then sell its interest in Wanda 
Properties Investment Ltd, Wanda International Real Estate 
Investment Co Ltd, Wanda Americas Real Estate Investment Co Ltd 
and Wanda Australia Real Estate Co Ltd to Wang's Dalian Wanda 
Commercial for an amount that is yet to be fixed.  
    It gave no further details.  
    Trading in Wanda Hotel shares, which were suspended on 
Wednesday, will resume on Thursday. 
    Chinese banks have been told to stop providing funding for 
several of Wanda's overseas acquisitions as Beijing tries to 
curb the conglomerate's offshore buying spree, according to 
sources familiar with the matter.  urn:newsml:reuters.com:*:nL3N1K82KV    
    Run by China's richest man, Wang Jianlin, Wanda is one of a 
handful of Chinese conglomerates that have expanded aggressively 
abroad over the past few years, into areas well beyond their 
original business - in this case, property. 
    Last month, Dalian Wanda Group altered a deal with developer 
Sunac China  1918.HK  after banks scrutinised their credit risk, 
by bringing in another developer, Guangzhou R&F Properties 
 2777.HK .  urn:newsml:reuters.com:*:nL3N1KA3OL 
    ($1 = 6.6720 Chinese yuan renminbi) 
 
 (Reporting by Donny Kwok; Editing by Himani Sarkar) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: WANDA HOTEL ASSET RESTRUCTURE/