Dalian Wanda Group is selling a 49% stake in its investment arm to local film and TV producer China cotton Holdings is in a constant endeavor to reduce debt.
Wanda Beijing is selling a stake in Wanda Investments for $315M (RMB2.26BN) as part of efforts to raise funds to pay down $400BN of debt outstanding last weekend.
Wanda Investments holds a 20% stake in the group’s Shenzhen-listed entertainment division. wanda movieOne that operates a cinema chain in China, finances and has stakes in Chinese films dune Producer Legendary Entertainment.
Earlier this month, Wanda Investment separately sold an 8.3% stake in Wanda Film for $306N (RMB2.2BN). The buyer was Lu Lili, wife of Shen Jun, controller of financial data platform East Money Information.
Tencent-backed Ruyi invests in films including recent hit comedy post the truth and blockbuster detective chinatown Franchise, as well as TV series included nirvana in fire,
Dalian Wanda, the property developer-turned-entertainment conglomerate controlled by billionaire Wang Jianlin, once had major ambitions in Hollywood – with plans to invest in US studios and acquire North American cinema chains AMC Theaters and Legendary Entertainment.
However, the group faced pressure from Chinese authorities in 2017 over heavily indebted companies and subsequently sold its Chinese studios and theme parks, a Los Angeles property development and most of its stake in AMC. brought to the great external capital from private equity group Apollo last year.
China’s current debt problems in the commercial property sector and the impact of the COVID-19 pandemic on the exhibition sector have further squeezed Dalian Wanda over the past few years. It is also looking for a buyer for its Australian cinema chain Hoyts.