Property and entertainment conglomerate Dalian Wanda Group Co. Ltd. boosted its buyout offer for its Hong Kong-listed commercial property unit, calling the raised bid its best offer, The Wall Street Journal reports.
Dalian Wanda Commercial Properties Co. Ltd. (03699.HK) said in a statement to the Hong Kong stock exchange that its parent company will offer HK$52.80 for the company’s shares, an increase of 10 percent over its earlier offer of HK$48 per share.
Shares of the commercial property unit, controlled by Chinese billionaire Wang Jianlin, fell 1.4 percent after they resumed trading Monday afternoon to finish at HK$49.30 a share, below the offer price, reflecting uncertainty over the deal.
China’s stock regulator said recently it will scrutinize deals involving companies delisting from overseas exchanges and planning to go public again domestically at much higher valuations.
Hong Kong regulators have taken a few weeks to approve the deal, because of the unusual funding structure of the transaction, the newspaper cited unnamed sources as saying.
Unlike previous deals, which were mostly funded by the buyer’s own cash and borrowing, Wanda Group has relied on several Chinese institutional investors to fund the deal.
– Contact us at [email protected]