In the latest in a series of controversial restructuring deals for Chinese conglomerate Dalian Wanda, Wanda Hotel Development, a subsidiary of the group, has said it will buy over $1bn of assets from founder Wang Jianlin.
In a on August 10, Wanda Hotel Development announced it would acquire Wanda Culture Travel Innovation for ¥6.3bn ($945m), paid either in cash or through the issue of shares and convertible bonds, and Wanda Hotel Management for ¥750m ($113m), paid in cash. The announcement saw shares in Wanda Hotel Development rise by over 30 percent.
Dalian Wanda is one of four Chinese conglomerates that have come under scrutiny for aggressive attempts to expand their overseas business interests in recent years
Wanda Travel designs and constructs theme parks, and Wanda Hotel Management operates in the sphere of hotel construction and management, hence both firms operate in the tourism sector along with Wanda Hotel Development. The statement also outlined further restructuring plans, on top of the acquisition.
“Wanda Hotel Development will also dispose of its interests in four overseas projects to Dalian Wanda Commercial. After the above transactions, Wanda Hotel Development will become a strategic platform as Wanda Group’s Hong Kong listed company focusing on theme park and hotel operation and management,” it said.
Dalian Wanda is one of four Chinese conglomerates that have come under scrutiny for aggressive attempts to expand their overseas business interests in recent years. The firm is now the subject of a government crackdown on risky lending to large corporations. As by Reuters, Chinese banks have been forced to stop lending funds for Wanda’s overseas acquisitions to put an end to the string of overseas buying.