Dalian Wanda Commercial Management Group Co. has held talks with pre-IPO investors of its subsidiary Zhuhai Wanda Commercial Management Group, and has proposed to extend investors’ divestment rights for two years until 2025 while offering to provide increased stakes in Zhuhai Wanda as an incentive for the extension, according to two sources familiar with the matter.
Zhuhai Wanda previously told its pre-IPO investors and shareholders that the company had approved the plan to distribute cash dividends for the second quarter of 2023 to its shareholders, and that it plans to complete the distribution by the end of September, the sources added.
Zhuhai Wanda’s pre-IPO investors include the Cheng Yu-tung family (through Chow Tai Fook Nominee Ltd.), Country Garden, CITIC Capital, PAG Group, Tencent, Warburg Pincus and Ant Group, as
reported.
Country Garden Holdings previously said it does not plan to exercise its divestment rights if Zhuhai Wanda cannot be publicly listed by the end of 2023, and that it had pledged some of the shares it owned in Zhuhai Wanda during its own previous onshore bond issuances, as
reported.
With regard to upcoming maturities, Wanda Commercial told investors that it plans to repay its CNY 3.8 billion corporate bond putable Sept. 11, “20 Wanda 01”, on time with its internal resources, the sources noted.
For the $600 million offshore notes due January 2024, the company said there’s still time left before the maturity and it plans to dispose of certain offshore assets during the second half of 2023 with the proceeds to be used to help repay the due January 2024 notes, said one of the first two sources and a third source familiar with the matter.
The company’s offshore assets include Hollywood studio Legendary Entertainment, Australian cinema chain Hoyts, payment receivables from its previous sale of a Chicago project, sports marketing firm Infront Sports & Media, and UK luxury yacht manufacturer Sunseeker International, although some of the assets have been pledged before to conduct financings, sources noted.
Wanda has put its stake in Hoyts up for sale. However, the company noted to investors that the proceeds from any disposal could not be used to repay the debt of Wanda Commercial directly, but that it might allocate special dividends, said one of the first two sources.
Wanda did not respond to requests for comment as of press time.