Dalian Wanda Group on Monday said it will sell 91 percent of 13 tourism projects, as well as 76 hotels in China, to Sunac China for a total of 63.18 billion yuan (US$9.3 billion), Reuters reports.
Shares in Wanda Hotel Development surged more than 150 percent after the news.
The 91 percent stake in Wanda mega cultural and tourism projects, located across the country from the northern city of Harbin to Kunming in the south, will fetch 29.58 billion yuan.
Wanda, owned by Wang Jianlin who is one of China’s richest men, had earmarked more than 300 billion yuan for investment in its cultural and tourism projects, which usually comprise a theme park, shopping center, hotel and residential buildings.
Wanda said Tianjin-based Sunac will be responsible for all the loans for the projects, but the brand name and design of the projects will remain unchanged, and they will still be operated and managed by Wanda.
The conglomerate will also sell 76 hotels for 33.6 billion yuan. The two parties are expected to sign an agreement on the deal by the end of this month.
Both will also engage in strategic cooperation in movie business, the statement said. Dalian Wanda’s businesses also include cinema chains.
“It seems Sunac wants to be a Wanda No. 2 and develop its own cultural and entertainment business,” said CRIC Hong Kong head of research David Hong.
Sunac’s shares in Hong Kong were suspended from trading ahead of what it said would be a “very substantial acquisition” announcement.
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