China/Hong Kong: Wanda Hotel Development Announces Major Restructuring
In the course of comprehensive restructuring measures, Wanda Hotel Development – an arm of Dalian Wanda Group, listed at Hong Kong Stock Exchange – has announced the acquisition of Wanda Culture Travel Innovation Group (Wanda Travel) and of Wanda Hotel Management Co.. The acquisition of Wanda Travel, which is principally engaged in theme park design, construction and operation management, is figured with a value of approx. 802 million EUR (6.3 billion RMB), to be paid either in cash, convertible bonds or by the issue of shares, with a share price determined by the company’s closing price on August 8th, 2017 at 1.16 HKD (0.13 EUR). Also, Wanda Hotel Development will take over Wanda Hotel Management for a cash price of some 95 million EUR (750 million RMB). After the execution of the transactions, Wanda Hotel Development will become a strategic platform as Wanda Group’s Hong Kong-listed company focusing on both theme park and hotel operation and management.
This past July, Wanda Group sold a large part of its hotel and leisure divisions to two Chinese real estate companies, at a total transaction value of some 8.1 billion Euros (cf. EAP news from July 21st, 2017).
Furthermore, according to recent media reports (e.g. Sueddeutsche, please click here to read the article in German), it seems that the Chinese government has recently restricted acquisition activities of Chinese companies outside of China. (eap)
