Date
20 January 2017
Wanda's Wang Jianlin hopes to get a higher valuation for the group's commercial property arm by moving its listing to mainland China. Photo: Bloomberg
Wanda's Wang Jianlin hopes to get a higher valuation for the group's commercial property arm by moving its listing to mainland China. Photo: Bloomberg

Wanda Commercial shareholders approve buyout offer

Dalian Wanda Commercial Properties Co. (03699.HK) shareholders have approved a US$4.4 billion buyout offer from the firm’s parent company, Dalian Wanda Group, paving the way for a delisting of the entity from the Hong Kong stock exchange.

The commercial property unit of Wanda Group said on Monday that 88.5 percent of independent shareholders voted in favor of the buyout plan, while 7.3 percent voted against it, Reuters reports.

Wanda Group, which is controlled by China’s richest man Wang Jianlin, offered HK$52.8 a share under the buyout plan for the Hong Kong-listed unit, aiming to take it private before relisting it in China where it hopes for a higher valuation.

Wanda Commercial has told investors it expects a valuation three times higher in the mainland where its brand is more recognized.

A higher valuation will allow Wanda Commercial to reduce funding costs, either through issuing new shares or via stock swaps in acquisition deals, Reuters noted.

Wanda’s move could encourage some other Hong Kong-listed Chinese firms to move their listings to the mainland.

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