(Yicai Global) Dec. 5 -- Wang Jianlin, chairman of China's commercial property giant Dalian Wanda Group Co., plans to increase his stake in Wanda Hotel Development Co. [HKG:0169] (WHD) to 65 percent to take control of the company. Wang will buy the stake from Wanda Commercial Properties Overseas, which would also inject liquidity into the indebted property unit.
Wanda Hotel Development will transfer 65.04 percent of its shares to a wholly owned investment firm of Wang at HKD1.2 (USD0.15) apiece, the company said yesterday. Under Wanda Hotel Development's current ownership structure, Wang holds a stake of less than 40 percent in it due to dilution, the Securities Daily reported today.
Wanda Hotel Development is the only Hong Kong-listed platform of Dalian Wanda Group. In August, the group injected a hotel management company and a culture & travel company into the platform for CNY750 million (USD113.4 million) and CNY6.3 billion, respectively, while Wanda Hotel Development sold its four real estate projects to the group.
The deal helped the Hong Kong-listed firm achieve an asset-light operation. Wang's latest share purchase reflects his appreciation of the platform, analysts commented, adding that possible further capital operations by Wanda Hotel Development cannot be ruled out. The company shares rose 10.49 percent to close at HKD1.58 yesterday, after reaching as high as HKD1.7 in intraday trading.