Its Share Price Rises 20% as Wanda Hotel Development Buys Wanda Commercial Properties Assets
(Yicai Global) Aug. 10 -- Chinese commercial property megalith Dalian Wanda Group Co. restructuring its subordinate assets.>
Two asset-light companies, Wanda Hotel Management (Hong Kong) Co. (Wanda Hotel Management) and Wanda Culture Travel Innovation Group Co. (Wanda Culture Travel) will merge into Wanda Hotel Development Co. (Wanda Hotel Development) [HK:0169].
The company will purchase all shares in Wanda Culture Travel for USD945 million (CNY6.3 billion), and all the shares of Wanda Hotel Management for CNY750 million. The major business scope of Wanda Culture Travel encompasses design, construction and operation of theme parks, while Wanda Hotel Management mainly engages in design, construction and operational management of hotels, the announcement recited.
Wanda Hotel Development will sell its equity in several real estate projects home and abroad to Dalian Wanda Commercial Properties Co. Wanda Commercial Properties) [HK:3699]. The equity includes 51 percent shares of Wanda Real Estate Investment Co., 60 percent shares of Wanda International Real Estate Investment Co., 60 percent of the shares of Wanda American Property Investment Co. and 60 percent shares of Wanda Australia Real Estate Investment Co.
The above companies' real estate projects are mainly located in Guilin in China's southwestern Guangxi province, London, Chicago and Australia's Gold Coast.
The news drove Wanda Hotel Development's share price up over 40 percent today. As of press time, these gains had narrowed to 20.7 percent, and the price was reported at HKD1.4 per share.
Wanda Commercial Properties' application for an initial public offering in the A share market has been on the burner since 2015 and its structure has changed many times. Wanda Commercial sold its equity in 13 cultural tourm projects and 77 city hotels to Sunac China Holdings Ltd [HK:1918] and Guangzhou R&F Properties Co. [HK:2777] in July.