Wanda Ho­tel shares sus­pended as over­haul ex­panded

China Daily (Canada) - - BUSINESS -

BEI­JING — Bil­lion­aire Wang Jian­lin is plan­ning a re­or­ga­ni­za­tion of Wanda Ho­tel De­vel­op­ment Co, ex­pand­ing an over­haul of the Chi­nese ty­coon’s prop­erty-toen­ter­tain­ment empire.

Shares of Wanda Ho­tel were sus­pended from trad­ing on Wed­nes­day, pend­ing the re­lease of in­for­ma­tion in­volv­ing a let­ter of in­tent that was signed on a “pos­si­ble as­set re­struc­tur­ing” with a per­son con­nected to the com­pany, ac­cord­ing to a Hong Kong stock ex­change fil­ing.

A rep­re­sen­ta­tive of Wanda Ho­tel, which con­sists mostly of over­seas prop­erty projects un­der con­struc­tion, de­clined to com­ment be­yond the state­ment.

The move is the lat­est in a broader re­or­ga­ni­za­tion of Wang’s Dalian Wanda Group Co, one of China’s once-ac­quis­i­tive firms now un­der scru­tiny by Chi­nese au­thor­i­ties.

The con­glom­er­ate last month agreed to sell most of its do­mes­tic theme park and ho­tel as­sets for $9.4 bil­lion, while shares of the group’s Wanda Film Hold­ing Co unit have been sus­pended from trad­ing since early July, pend­ing a re­struc­tur­ing of the com­pany.

Wanda Ho­tel, whose as­sets in­clude projects in Aus­tralia, surged 16 per­cent to HK$1.16 (15 cents) on Tues­day af­ter the Aus­tralian Fi­nan­cial Re­view re­ported the group was con­sid­er­ing sell­ing two projects in Aus­tralia val­ued at about A$2 bil­lion ($1.57 bil­lion).

Wanda Ho­tel and its par­ent de­nied the re­port.

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