SHANGHAI – Wanda Hotel Development, a subsidiary of China’s Dalian Wanda group, shot up 19.82 percent at the Hong Kong exchange on Thursday after an overnight restructuring announcement.
Wanda Hotel Development announced Wednesday night it will buy Wanda Culture Travel innovation Group, that builds and manages theme parks, and Wanda Hotel Management Co., that operates hotels – from Dalian Wanda for a combined 7.05 billion yuan (US$1.06 billion).
The deal is part of the restructuring process of the company, owned by multi-billionaire Wang Jianlin, which in recent years has become one of the biggest buyers of real estate assets throughout the world and is currently the world’s largest movie theater operator.
Three weeks ago, the conglomerate announced it will pay off most of its debts worth 200 billion yuan ($29.57 billion) by liquidating its tourism projects and hotels, after it came under the government scanner for its high debt ratio.
On July 17, Chinese authorities had asked government banks to check lending to Dalian Wanda for overseas acquisition projects.