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Wang Jianlin clears hurdle to buy back Wanda’s shares

Shareholders approve tycoon’s quest for higher valuations on mainland bourses for his Hong Kong-listed Wanda

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Wang Jianlin, chairman of Dalian Wanda Group, seen during the Hong Kong listing of Wanda Commercial Properties in 2014. Now the company plans to delist. Photo: Dickson Lee
Summer Zhen

Tycoon Wang Jianlin’s quest for a higher value for his flagship company cleared a hurdle on Monday, setting the pace for one of the biggest moves by a Chinese company to relocate its stocks listing from Hong Kong to the mainland.

Shareholders gave their nod to Wang’s HK$34 billion plan to buy back shares of Dalian Wanda Commercial Properties Co. at a meeting in Beijing on Monday morning, a source with direct knowledge of the matter told the South China Morning Post. Wanda confirmed the result in a statement to the Hong Kong Stock Exchange after trading hours.

Wanda’s shares, which trade at 6.5 times 2015 earnings, could get a price-earnings ratio of as much as 20 times if they were traded on either the Shanghai or Shenzhen exchanges in mainland China, Wang said earlier this year.

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“The share prices of small and mid-size mainland China companies have long been traded at a discount and in low volumes,’’ said Wong Chi-man, head of research at China Galaxy International Securities.

Wang’s plan adds to the pressure on Hong Kong to retain listings on its stock exchange, as Chinese companies including Wumart Store, Peak Sport Products Co. have either bought back shares, or are planning to do so.
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Wang in May offered HK$52.80 per share to buy out owners and delist Wanda, offering a 10 per cent premium to its IPO price and a mere 15 months after the developer’s trading debut in Hong Kong. The company’s shares have fallen 5.5 per cent in 12 months, unchanged at HK$51.20 on Friday before trading was halted pending the shareholders’ meeting.

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