Chinese property giant Dalian Wanda Group has avoided an immediate repayment of more than $4 billion to its investors after reaching an agreement with them, according to a statement by the firm on Tuesday (Dec 12).
Wanda was due to repay about 30 billion yuan (S$5.6 billion) plus interest to a group of investors in Wanda’s mall operating unit, Zhuhai Wanda Commercial Management Group, before the end of this year if Zhuhai Wanda shares are not listed.
Under the new deal, the group of investors, including private equity investor PAG, agreed to re-invest their money at the year-end deadline after Wanda pays back their original stakes, said the statement.
Under the arrangement, the group of investors will control about 60% of Zhuhai Wanda. Dalian Wanda, controlled by its billionaire founder Wang Jianlin, will hold 40% as the single largest shareholder, the statement said.
The group of investors put about 38 billion yuan into Zhuhai Wanda in 2021, of which PAG contributed about 18 billion yuan, it said.
Zhuhai Wanda has been outperforming its business targets for three consecutive years since 2021, delivering about 12% annual after-tax revenue growth on average, the statement said.
Reuters