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

Reuters  |  HONG KONG 

(Reuters) - Development Co Ltd <0169.HK>, a unit of Chinese conglomerate Dalian 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 Culture Travel Innovation Group Co Ltd from Wang's Beijing 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 operator Management (Hong Kong) Co Ltd from Wang's Dalian Commercial Properties Co Ltd for 750 million yuan in cash, it said in a filing to the bourse late on Wednesday.

said it would then sell its interest in Properties Investment Ltd, International Real Estate Investment Co Ltd, Americas Real Estate Investment Co Ltd and Australia Real Estate Co Ltd to Wang's Dalian Commercial for an amount that is yet to be fixed.

It gave no further details.

Trading in 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.

Run by China's richest man, Wang Jianlin, 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 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>.

(Reporting by Donny Kwok; Editing by Himani Sarkar)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 10 2017. 06:56 IST