×
You will be redirected back to your article in seconds

Wanda Ups Price of Theme Park Sale, Switches Hotel Buyer

China’s Dalian Wanda on Wednesday altered the terms of its proposed selloff of theme parks and 77 hotels, upping the price of the deal and changing the buyer of the hotels.

Wanda said the hotels would now be sold to Guangzhou-based R&F Properties instead of developer Sunac China, which was originally announced as the sole buyer of both the parks and the hotels. Wanda also raised the price of the parks from $4.29 billion (RMB 29.6 billion) to $6.34 billion (RMB 43.8 billion), and said it would no longer arrange vendor financing to help Sunac with the purchase.

The price tag of the deal for 91% stake in the hotels was reduced to $2.88 billion (RMB 19.9 billion). That puts the total value of the various sales at $9.22 billion ($63.7 billion).

According to a joint statement from the three companies, Sunac has already paid a first installment of $2.17 billion (RMB 15 billion).

Wanda surprised markets last week with the announcement of the $9.3-billion theme parks and hotels sale to Sunac, a move designed to ease Wanda’s debt burden. The sale triggered a wave of interest in Wanda’s financial position that only increased when, a day later, Sunac disclosed that Wanda would help it procure loans worth roughly half of the sale price, casting doubt on the extent of the expected debt reduction.

Since then, documents have emerged apparently showing that the Chinese government has ordered banks to cease lending to Wanda in relation to six of its overseas acquisitions.

The practical consequences for Wanda of the lending ban are still unclear, but the symbolic cost has been high. The sprawling conglomerate, which has traded on its political connections and made chairman Wang Jianlin a personal fortune estimated at $30 billion, is now clearly and suddenly in a tenuous position.

That has caused sharp fluctuations in the value of Wanda’s market-traded debt and affected the share price of those listed subsidiaries that are currently trading. Its Wanda Film Holdings unit was suspended from trading last week ahead of a restructuring and refinancing that is to be announced by Aug. 3. Wanda’s ability to pull off that merger and share sale is now being questioned by financial analysts.

Last week’s parks-and-hotels deal also cast growing doubt on Sunac’s finances. Its commercial debt was downgraded by ratings agencies. It has been highly acquisitive in the past two years and has also invested in the troubled LeEco entertainment and technology group.

Vivienne Chow in Hong Kong also contributed to this report.

More Biz

  • DOJ Indicts Five in Piracy Ring

    Department of Justice Indicts Five in International Piracy Ring

    Five men were indicted Wednesday on charges that they hacked into the servers of production companies, and stole hundreds of films and TV shows, including “50 Shades of Grey” and “The Walking Dead.” The men are based in four countries — the United Kingdom, the United Arab Emirates, Malaysia, and India. Only one has been [...]

  • Endeavor Sued Over Idaho Country Music

    Endeavor Sued Over Idaho Country Music Festival

    A former county official in rural Idaho sued Endeavor on Wednesday, alleging she is owed more than $190,000 in unpaid loans arising from a troubled country music festival. According to her complaint, Bonnie Layton was the economic development director for Elmore County, Idaho, when she came in contact with the organizers of the Mountain Home [...]

  • Former movie producer Harvey Weinstein (L)

    Weinstein Attorney: 'Many of These Women Have Lied'

    Harvey Weinstein’s attorney blasted the Manhattan D.A.’s office on Wednesday, arguing that prosecutors brought a flawed case in haste due to public pressure. Ben Brafman sent a letter to Judge James Burke, who is scheduled to hear a motion to dismiss the case next week. In it, he responded to Assistant D.A. Kevin Wilson, who [...]

  • 2019 Variety Predictions

    2019 Predictions: What's in Store for Film, TV and Music Next Year?

    It would be hard to top the drama of 2018. From media mega-mergers to the rise of Time’s Up, it was a year that had more than its fair share of twists and turns. Leslie Moonves resigned in disgrace, AT&T snapped up Time Warner, Disney inched closer to subsuming Fox and “Black Panther” shattered box [...]

  • Tencent Music Raises $1.1 Billion for

    Tencent Music Raises $1.1 Billion for IPO, Much Less Than Expected

    China-based music streaming company Tencent Music Entertainment Group said it raised nearly $1.1 billion in its U.S. initial public offering, according to Reuters. Earlier this year, the company was expected to be valued at as much as $30 billion and raise $4 billion for its IPO, but those estimates were slashed in September. he IPO [...]

  • Justin Tranter and Katie Vinten Partner

    Justin Tranter and Katie Vinten Partner With Warner Bros. for New Label

    As previously reported, hit songwriter Justin Tranter and Warner/Chappell Publishing’s Katie Vinten are launching a new label in partnership with Warner Bros. Records, the company announced officially today. In her new role, Vinten, most recently the company’s co-head of A&R, will also serve as an A&R Consultant to Warner Bros. Records and will continue with [...]

  • Ella Mai

    Ella Mai Signs Worldwide Deal With Sony/ATV Music Publishing

    Singer Ella Mai, who is enjoying a worldwide smash with her song “Boo’d Up” and was nominated for two Grammy Awards last week, has signed a worldwide deal with Sony/ATV Music Publishing. The song peaked at No. 5 on the Billboard Hot 100 and has been streamed more than 650 million times in the U.S. [...]

More From Our Brands

Access exclusive content