China’s e-commerce trio invest US$5.4 billion in Wanda’s bricks-and-mortar retail business
Tencent is increasingly eyeing offline opportunities and the investment comes a week after its showed interest in buying Carrefour’s mainland operations.
Property magnate Wang Jianlin has found the capital to fund his HK$30 billion (US$3.8 billion) plan to take his Hong Kong-listed flagship private, enlisting a trio of China’s largest e-commerce retailers to what he calls the world’s biggest single alliance between the new economy and bricks-and-mortar businesses.
Tencent Holdings has partnered with Suning Commerce Group, JD.com and Sunac China Holdings to buy a 14 per cent stake in Wanda Commercial Properties, Wang’s property arm, for 34 billion yuan (US$5.4 billion), according to a statement by Dalian Wanda Group.
Wang, once the wealthiest businessman in China, had been trying since September 2016 to fund the delisting of Wanda Commercial Properties from the Hong Kong exchange, aiming to list it in Shanghai for higher valuation. The exercise is estimated to cost HK$30 billion, according to investment bankers.
In a January 20 speech to Wanda’s staff, Wang said he had arranged for financing for his undertaking. The funding was part of the strategic review of Wanda’s property projects and would consider any business opportunities that could create value for shareholders.
Wanda Commercial’s total debt was 279 billion yuan as of end-June, according to ratings agency S&P.
