Wanda Cinema Line, the theatrical exhibition arm of Chinese property development giant Dalian Wanda, is to pay $5.72 billion to buy up its other film assets.
In a regulatory filing Thursday, Wanda Cinema said that it would buy Wanda Media, the division that includes the recently acquired Legendary Entertainment. It will use a mix of cash and shares.
Wanda Cinema Line will also raise a further $1.23 billion in a share placement. This will be used to bolster working capital and help it continue building theaters.
Wanda Cinema Line’s shares have been suspended from trading on the Shenzhen stock exchange since February, pending the corporate restructuring. The latest trio of filings did not indicate when stock trading would resume.
The absorption of Wanda Media by Wanda Cinema puts paid to plans that were mooted earlier this year by Dalian Wanda chairman Wang Jianlin that he might give IPOs to either the production or the distribution units separately. Share market conditions have remained tough and the $3.5 billion acquisition of Legendary made the Wanda Media unit attractive enough that it could attract outside investors.
Earlier this week, Wanda confirmed that it is co-investing in Paramount’s “Teenage Mutant Ninja Turtle” sequel, “Teenage Mutant Ninja Turtles: Out of the Shadows.” It described that deal as a strategic step in its global plans. Finance for that deal came through Wanda’s Movie Media Group subsidiary, previously considered predominantly a marketing company. Wanda said that the Movie Media Group unit “will act as an important agent to spearhead Wanda Cinema Line’s investment into Hollywood.”