Dalian Wanda Group Co. Ltd. is said to be closer toreleasing an improved buyoutoffer for Dalian Wanda CommercialProperties Co. Ltd., The WallStreet Journal reported, citing sources familiar with the plan.
The sources added that the Chinese conglomerate islikely to increase the buyout price for the property developer's shares byaround 10%, in an effort to lure investors such as Kuwait Investment Authorityand China Life Insurance Group Co.
The original price to acquire Dalian Wanda Commercial'sH shares amounted to at least HK$48 in cash apiece, as previously
Kuwait Investment owns an 8.07% stake in Dalian WandaCommercial, while China Life holds a 7.42% stake, according to a filing citedby the publication.
Dalian Wanda Group needs to secure the support ofseveral cornerstone investors, as the obstacles for the buyout plan areseemingly difficult, according to Citigroup Inc. analyst . The tender offer wouldrequire 90% of shareholders' approval, Choi added.
Dalian Wanda Commercial had trading of its shares in HongKong on April 25, prior to the company reportedly considering a backdoorlisting on theShanghai bourse.