Wanda Hotel Development, a Hong Kong-listed real estate arm of the Dalian Wanda Group led by billionaire Wang Jianlin, said in a statement last night it would pay the equivalent of $1.05 billion in cash, stocks or convertible bonds for two Wang-controlled businesses in a restructuring.
Wanda Hotel Development will acquire Wanda Culture Travel Innovation Group for 6.3 billion yuan, or $940 million, and Wanda Hotel Management for 750 million, or $112 million, in cash. The two business are controlled by Wang and his family, the statement said.
Wanda Travel is involved in theme park design, construction and operation management, while Wanda Hotel Management provides hotel design, construction and operation management services. Wang, in a move to reduce his debt and move toward an “asset light” business model, sold off theme park ownership stakes in an agreement last month but retained management rights.
To focus its business on theme park and hotel management, Wanda Hotel Development will also dispose four overseas property projects to Dalian Wanda Commercial, Wang’s main real estate arm.
Trading in Wanda Hotel Development was suspended in Hong Kong yesterday. Click here for the company’s statement.
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