(Yicai Global) July 4 -- Wanda Film Holding Co. [SHE:002739] is planning a major acquisition of media assets, and the deal is expected to be very significant, to the extent that it will be deliberated by the board of shareholders, the company said in a statement today. It has applied for suspension of share trading beginning today.

The most likely cause for the trading suspension is that it has "re-launched the acquisition of Wanda Media Co.", reported Cnstock.com, citing a market insider. The company's president, Zeng Maojun, has previously said on several public occasions that acquiring Wanda Media was an important step in Wanda Film's development strategy, and that he would push it through at an appropriate time. In addition, he added, the move would be consistent with the company's strategic drive to build a 'film ecosystem.'

In May 2016, Wanda Film, known as 'Wanda Cinemas' at the time, announced its plan to issue shares to 33 existing shareholders of Wanda Media including Wanda Investment to purchase a 100 percent stake in the media firm, with target assets valued at around CNY37.5 billion (USD5.5 billion). The transaction price was provisionally set as CNY37.2 billion. The acquirer also proposed to raise up to CNY8 billion to replenishment working capital required for cinema construction projects. However, the deal was cancelled due to "significant changes in the stock market." Wanda Film said that it would re-launch the deal at an appropriate time.

A detail disclosed in the statement hints at the exceptional size of the acquisition being planned. The value of the target "media assets" is very large, to the extent that the deal needs to be approved by the board of shareholders. Wanda Media meets this criterion. "Acquiring 40 or 50 cinemas only means a 10 percent increase for us, so it doesn't constitute a major asset reorganization," the company once said.