China's Wanda in Deal With Investors to Avoid $4bn Repayment

Chinese property giant Dalian Wanda Group has done a deal to avoid having to repay more than $4 billion to investors.

The firm issued a statement on Tuesday saying it had reached an agreement with a group of investors.

Wanda was due to repay about 30 billion yuan (close to $4.2 billion) plus interest to a group of investors in its mall operating unit, Zhuhai Wanda Commercial Management Group Company, before the end of this year if Zhuhai Wanda shares were not listed.

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Under the new deal, the group of investors, including private equity investor PAG, has agreed to re-invest their money at the year-end deadline after Wanda pays back their original stakes, the statement said.

Under the arrangement, the group of investors will control about 60% of Zhuhai Wanda.

Dalian Wanda, controlled by its billionaire founder Wang Jianlin, will hold 40% as the single largest shareholder, the statement said.

The group of investors put about 38 billion yuan into Zhuhai Wanda in 2021, of which PAG contributed nearly half that sum – about 18 billion yuan, it said.

Zhuhai Wanda has been outperforming its business targets for three consecutive years since 2021, delivering about 12% annual after-tax revenue growth on average, the statement said.