Dalian Wanda Group selling chunk of its assets for $9.3B

CHINA-WANDA-ECONOMY

Its billionaire owner Wang Jianlin had past year said his "wolf pack" of parks would beat USA rival Walt Disney Co.

Ltd. will part ways with a portfolio of tourism projects and hotels in a 63.17 billion Chinese yuan ($9.29 billion) sale to Chinese property developer Sunac China Holdings Ltd., according to a Monday statement.

Variety offers five possible reasons for the sale, including a reduction of the (possibly massive) debt incurred during Wanda's global spending spree over the last few years, avoidance of the growing regulatory scrutiny in China, and competition from Disney.

Wanda opened its first Wanda Cultural Tourism City project in Nanchang past year and has others in development in several cities, including Guangzhou, Chengdu and Haikou.

But China is likely to see more such deals as companies are forced to pay the piper for rapid expansion, said Michael Every, senior Asia-Pacific strategist for Rabobank.

The Sunac deal is even more surprising given that Wang had pinned hopes for his company's diversification from property development on the Wanda Cities projects.

Sunac China's board, led by its Founder and Chairman Sun Hongbin, stressed in a company statement on Tuesday morning that Dalian Wanda Commercial Properties is a "reputable" developer with "excellent brand influence".

"Through this asset transfer, Wanda Commercial's debt ratio will be greatly reduced, all the proceeds will be used to repay loans". But the rule was reversed recently as concerns grew over capital flight.

"This cooperation will add a large number of prime land reserves and property assets for the company at a reasonable cost, and will provide strong support for sustainable and healthy development of the company in the future", Sunac China said.

Sunac halted trading of its shares in Hong Kong yesterday, pending the announcement, after closing 6.9 percent lower on Friday.

It controls the AMC cinema chain, as well as Legendary Entertainment, co-producer of hit films including Godzilla and The Dark Knight Rises. But cracks appeared in Wanda's ambitions when the company temporarily closed its indoor theme park in Wuhan after less than two years of operation.

Related news:

Hot News

isis-killer-beheading-video-story-top Takata Recalling Another 2.7 Million Faulty Airbags
Jul 12, 2017 - 00:39
Chris Martin, a Honda spokesman, said in an email the company learned of the incident through a legal claim in March. According to Honda, Alpha inflators can have as high as a 50-50 chance of exploding and injuring an occupant.

isis-killer-beheading-video-story-top Charlie Gard: Treatment can prolong life, Dr. Marc Siegel says
Jul 12, 2017 - 00:38
There are 18 children currently on this treatment - one of them wasn't able to do anything and now she's riding a bike, she said. Siegel said the baby was in discomfort, and while the treatment won't bring about a cure, it could potentially extend his life.

isis-killer-beheading-video-story-top EU's chief negotiator: Single market benefits not possible for United Kingdom after Brexit
Jul 11, 2017 - 00:55
The single market's principles of free movement of people, goods, services and capital are indivisible, he said. I cannot see how both sides can accept any realistic deal that would also be acceptable to the EU27.

isis-killer-beheading-video-story-top Omaha gas prices see sharp increase
Jul 11, 2017 - 00:53
Prices Sunday were 8.5 cents a gallon lower than the same day one year ago, and are 12.9 cents a gallon lower than a month ago. AAA Northeast says its weekly survey conducted Monday found regular gasoline selling for $2.23 for a gallon.

isis-killer-beheading-video-story-top Police prepare Bronx church for slain cop's funeral
Jul 11, 2017 - 00:53
Mourners will gather at World Changers Church at 2417 Grand Concourse in the Fordham Heights section of the Bronx. Soon after, officers shot and killed the gunman after they say he drew a weapon on them.

isis-killer-beheading-video-story-top Unprovoked ceasefire violation by Pakistan in Poonch sector, J&K
Jul 10, 2017 - 00:58
His two daughters Rubeena Kousar and Zahida Kousar suffered injuries in the incident. He also said that two Pakistani bunkers were destroyed during the operation.

isis-killer-beheading-video-story-top Hundreds of homes evacuated during California wildfires
Jul 10, 2017 - 00:57
An evacuation order was lifted in Landusky, Montana, in the Little Rocky Mountains south of the Fort Belknap Indian Reservation. In Colorado, residents of almost 500 homes outside the ski town of Breckenridge were allowed to return home on Friday night.

isis-killer-beheading-video-story-top Shot at Gender-Reveal Party; 1 Person Dead
Jul 10, 2017 - 00:57
Investigators are waiting to interview all the surviving shooting victims before determining if the men are suspects, Love said. According to a report by Fox News, officials said two men wearing all black opened fire at the gender reveal party .

Tillerson taps career diplomat as Ukraine special envoy
Jul 10, 2017 - 00:56
Ukraine has been rocked by suspected separatist movements along its border with Russian Federation since 2014. Secretary of State Rex Tillerson in Kyiv on Sunday.

isis-killer-beheading-video-story-top Thomas abandons Tour de France following crash
Jul 10, 2017 - 00:56
Thomas had crashed on another descent, made treacherous by rain, earlier in the day, suffering a suspected broken collarbone. While Porte quickly received medical attention on the track, Martin was able to dust himself down and continued racing.

isis-killer-beheading-video-story-top Spider-man: Homecoming actor wants to fight the incredible Hulk
Jul 10, 2017 - 00:55
In third is Edgar Wright's latest film, Baby Driver , which sees only a 38 percent drop for estimated earning of $12.7 million. Asked who he would like Spider-Man to join in the future, Holland told MTV, "I really like the idea of Spider-Man and Hulk ".

Group Stage — CONCACAF Gold Cup
Jul 10, 2017 - 00:55
Men's National Team in a scrappy 1-1 draw against Panama at Nashville's Nissan Stadium on Saturday. He also scored against Chile a year ago in the Copa America at Philadelphia.

isis-killer-beheading-video-story-top Robb: What Lies Ahead For Celtics After Marcus Morris Trade?
Jul 09, 2017 - 01:16
They were forced to make room for free-agent star Gordon Hayward , but many in Boston lamented that Bradley was the choice. Thomas is the team's starting point guard, though he could play alongside Smart, who isn't almost the same kind of scorer.

isis-killer-beheading-video-story-top Britain's Johanna Konta reaches third round at Wimbledon for first time
Jul 09, 2017 - 01:13
British number two Watson, who was a set up before losing to Azarenka, believes there is no reason why Konta can not win in SW19. It was the 27-year-old's earliest departure from a major since his first round defeat against Benoit Paire at the 2015 US Open.

isis-killer-beheading-video-story-top Wimbledon 2017: Top seed Angelique Kerber battles back to beat Shelby Rogers
Jul 09, 2017 - 01:12
Djokovic, who extended his head-to-head against Gulbis to 7-1, is through to the fourth round at Wimbledon for the 10th time . She next faces Rybarikova, who eased into the last 16 of a Major for the first time with a 6-2, 6-1 win over Lesia Tsurenko.