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(Bloomberg) – The Abu Dhabi Investment Authority is considering buying a minority stake in Dalian Wanda Group’s shopping mall operator as it reviews its shareholding structure, according to sources familiar with the matter.
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ADIA, known as Abu Dhabi’s wealth fund, has held initial discussions about a potential stake purchase in Zhuhai Wanda Commercial Management Group, the people said. ADIA may buy the shares from existing holders, the people said, asking not to be identified because the information is private.
ADIA’s investment comes after billionaire Wang Jianlin relinquished control of Zhuhai Wanda in December as part of a landmark agreement to avoid repaying investors before the IPO. . Under the terms of the original investment, Wanda agreed to repay investors 30 billion yuan ($4.2 billion) plus interest if Zhuhai Wanda fails to complete its initial public offering by the end of 2023.
Private equity firm PAG and other investors hold a total of 60% of Zhuhai Wanda’s shares, with Mr. Wang holding the remaining 40% through another company. PAG invested approximately $2.8 billion in Zhuhai Wanda in the 2021 funding round. The mall operator was valued at less than 100 billion yuan in a December deal, less than half the amount the unit received in a fundraising three years ago.
Mr. Wang avoided imminent repayments in the December deal, but some investors are still looking to sell back their shares and exit, the people said. Zhuhai Wanda has approached banks for a loan of about 30 billion yuan as reserve cash in case redemption is possible, the people said.
In December, Country Garden Holdings agreed to sell a 1.79% stake in Zhuhai Wanda to Wanda Group for about 3.1 billion yuan. The Chinese developer said it expects to record a loss of about 160 million yuan from the sale.
A potential stake acquisition by ADIA will depend on Zhuhai Wanda’s ability to secure 30 billion yuan in financing from banks, the people said. There is no guarantee that the Abu Dhabi wealth fund will go ahead with the deal, they added.
Representatives for ADIA declined to comment, while representatives for PAG and Zhuhai Wanda did not respond to requests for comment.
Chinese regulators are seeking to expand access to some commercial loans as many developers, including major players such as China Evergrande Group and Dalian Wanda Group, struggle to repay debt and complete projects. provides further financial support to developers. Officials recently called on local governments to also help fund developers. Assess your needs and create a list of projects eligible for funding.
Zhuhai Wanda managed about 500 malls across China as of the end of November, 204 of which were owned by independent third parties, according to a December statement. The company filed for listing in Hong Kong for the fifth time in November. In addition to PAG, Zhuhai Wanda has attracted a strong list of pre-IPO investors including Ant Group, CITIC Securities and Tencent Holdings Co., Ltd., according to the preliminary prospectus.
–With assistance from Nicolas Parasie and Emma Dong.
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