(Yicai Global) Dec. 24 -- Shares in Wanda Sports Group, the sports events, media and marketing arm of real estate and entertainment conglomerate Wanda Group, surged almost 11 percent yesterday on the news that it is preparing to delist from the Nasdaq on Jan. 29.
Wanda Sports’ stock price [NASDAQ:WSG] closed up 10.67 percent at USD2.49 each yesterday.
Sister firm Wanda Sports and Media will buy all Class A shares at a price of USD2.55 each, the Beijing-based firm said yesterday. This is a 50 percent increase from its previous offer on Sept. 30 of USD1.67 per share.
It ends an 18-month run on the Nasdaq during which Wanda Sports failed to deliver. The firm's stock price plunged 35.5 percent on the first day of trading and was trading 68 percent below the issue price of USD8 yesterday.
The Covid-19 pandemic led to many athletic events being postponed or cancelled this year, badly affecting the sports broadcaster. Revenue plunged 42 percent in the third quarter from the same period last year to EUR91.2 million (USD111.3 million), a third straight quarter of falls, the company said in its third-quarter earnings report.
Wanda Sports also overstretched itself on overseas acquisitions, including Germany’s XLETIX, a leading obstacle course organizer, the US’ World Triathlon Corp, producer of the Ironman Triathlon, and Swiss sports marketing firm Infront Sports & Media, in recent years. It had debts of EUR409.5 billion (USD500 billion) in the third quarter, a 40 percent improvement on the previous quarter due to the sale of Florida-based World Triathlon in March.
Editor: Kim Taylor