China’s Wanda Signals Retreat in Debt-Fueled Acquisition Binge
Wanda said on Monday that it would sell the theme parks as part of a $9.3 billion deal
that includes 76 hotels and a major chunk of 13 tourism projects.
Sunac would pay $4.4 billion for a 91 percent stake in each of the 13 tourism projects, all in China, and would take over the loans for the projects.
By SUI-LEE WEEJULY 10, 2017
BEIJING — A year ago, the Chinese billionaire Wang Jianlin declared the dominance of his vast entertainment empire, Dalian Wanda Group, boasting
that his theme parks were a “pack of wolves” that would defeat the lone “tiger” of Disney’s Shanghai resort.
In the deal with Sunac, Wanda would continue to operate all of the projects under
the company’s brand name, and it would own fewer underperforming hotels.
The cash from the deal, with the property developer Sunac China, would be used to pay down debt.
“Wanda is selling the noncore part of its cultural tourism business,” said Deng Zhihao, a
real estate economist with Fineland Assets Management Company based in Guangzhou, China.
When Disney opened its Shanghai resort last year, drawing enormous crowds, Mr. Wang declared
that “the frenzy of Mickey Mouse and Donald Duck and the era of blindly following them have passed.”
Such aggressive expansion plans are now under increased scrutiny in Beijing.