Dalian Wanda Group is reconsidering a plan to take its Hong Kong-listed property arm private, two sources told Reuters, unnerved by greater scrutiny of China listings and uncertainty over whether shareholders will approve the offer price.
China’s securities regulator said on Friday it was concerned by the huge valuation gap between domestic and overseas stocks and speculation on shares in shell companies, potentially bad news for firms looking to go home to cash in on rich valuations.
Dalian Wanda Commercial Properties (3699.HK), owned by China’s richest man Wang Jianlin, had been looking to de-list in the Hong Kong bourse’s biggest potential buyout just 15 months after its debut, unhappy with its share performance and preferring to shift to a Shanghai listing.
It was not immediately clear if a final decision had been taken by Wanda Group to drop the take-private plan, the sources said. Wanda Group has signed an agreement with prospective investors to raise $4 billion for the buyout, and they have already paid part of that sum upfront.
Wanda Commercial declined to comment. Read more