Wanda Group Offers HK$34.5 Billion To Privatise Property Unit

May 30, 2016

NewsStandOnline.Net (30-May-2016): Chinese billionaire Wang Jianlin’s Dalian Wanda Group today announced that it is offering HK$34.5 billion (US$4.44 billion) in cash to buy out Dalian Wanda Commercial Properties, its Hong Kong-listed property unit.

The move, which comes just days after Wang said the unit was “substantially undervalued,” is the first step toward its eventual relisting in Chinese mainland stock exchanges.

Wanda Group will reportedly pay HK$52.8 for each share of the unit, which debuted on the Hong Kong stock exchange just 15 months back.

Wang Jianlin To Buy Out Dalian Wanda Commercial Properties For HK$34.5bn

The offer represents a 3 percent premium over its last trading price of HK$51.25 on April 22, when trading was suspended.

The transaction is still subject to regulatory and shareholder approval.

Today, after resuming trading in Hong Kong, the company’s shares fell 2.4 percent to HK$48.8.

“I’ve been in many industries and made many investments, many of them made with my friends, we’ve made a lot of money for every deal, except for this one,” Wang, China’s richest man, toldthe Chinese state-run CCTV earlier this month, adding that the property unit’s undervaluation in Hong Kong made him “feel sorry” for shareholders.