Sunac shares soar after it quit plans to buy Wanda’s hotel assets
Sunac China’s Hong Kong-traded shares surge as much as 18 per cent; R&F Properties rise as much as 10.7 per cent
Share prices of Sunac China Holdings and Guangzhou R&F Properties, the original and new buyers of Wanda Group’s hotel assets, surged on Thursday.
Sunac China’s Hong Kong-traded stock surged as much as 18 per cent in the morning, before scaling back to close 14.2 per cent up at HK$19.64.
R&F gained 6.8 per cent to close at HK$13.80, while those of Wanda Hotel Development, the Hong Kong-listed unit of Wanda Group, also gained 6.5 per cent to 82 HK cents.
In a last-minute twist on Wednesday, R&F, one of the nation’s top 20 developers by contracted sales, agreed to pay 19.9 billion yuan ($2.9 billion) for the hotels.
This allowed Sunac to scale back the original acquisition deal to 43.8 billion yuan for a 91-per cent stake in 13 tourism-related projects including theme parks. But the lowered price without the hotel assets still represented a 48 per cent increase over the original 29.6 billion yuan price tag for the 91-per cent stake.