Wanda Commercial Properties Overseas Ltd. signed a non-legally binding letter of intent to transfer its approximately 65.04% controlling stake in Wanda Hotel Development Co. Ltd. to a wholly owned subsidiary of Wang Jianlin, chairman of Dalian Wanda Group Co. Ltd., under a roughly HK$3.67 billion deal.
The stake transfer, which is part of the Dalian Wanda group's ongoing reorganization, is subject to the execution of legally binding documents by relevant parties. Under the offer, Wanda Commercial Properties Overseas will transfer 3,055,043,100 ordinary shares in Wanda Hotel at HK$1.20 per share to Wang's Wanda Investment Holding Co. Ltd.
Wanda Hotel added that the Securities and Futures Commission of Hong Kong has granted a waiver that will allow the transfer to push through without the need for a general offer for the company, pursuant to Hong Kong's takeovers and mergers code.
Alternatively, Wanda Commercial Properties Overseas is mulling an option to transfer its shares to Wanda Investment at an aggregate consideration equal to the sale price of the controlling stake in Wanda Hotel.
Wanda Commercial Properties Overseas and Wanda Investment intend to execute a definitive sale and purchase agreement for the transfer of Wanda Hotel shares by the end of January 2018, Wanda Hotel said in a release.
Post transfer, Wanda Hotel added that its ultimate controlling shareholder will be unchanged.
Reuters noted Dec. 4 that the potential transaction will increase Wang's direct holding in Wanda Hotel.
