Wanda Group offers HK$34.5b to privatise property unit

[HONG KONG] Chinese billionaire Wang Jianlin's Dalian Wanda Group Co is offering HK$34.5 billion (S$6.14 billion) to buy out and privatise its Hong Kong-listed property unit as it seeks a higher valuation for the business on mainland stock exchanges.

Wanda Group will pay HK$52.80 for each Hong Kong-traded share of Dalian Wanda Commercial Properties Co, the company said in a statement, compared with an earlier offer of at least HK$48. The shares, which have traded in Hong Kong for less than two years, have been suspended since April 25, pending the buyout details.

Mr Wang, who controls Wanda Commercial's Beijing-based parent, told China Central Television May 22 that the unit is "substantially undervalued" and must proceed with the privatisation.

The billionaire has been seeking investors to help purchase as much as 14.41 per cent of the shopping-mall operator and re-list it in mainland China, according to a document sent to prospective backers.

Going-private deals that aim to relocate overseas share listings to Shanghai or Shenzhen have been under the spotlight after China's stock regulator voiced concerns such transactions could flood its market.

BLOOMBERG