Wanda selling theme parks and hotels in $9.3B deal

Wanda selling theme parks and hotels in $9.3B deal

Wanda selling theme parks and hotels in $9.3B deal

Chinese conglomerate Wanda Group, owner of Hollywood's Legendary Studios, is selling most of its theme parks, retreating from a business it once said would challenge Walt Disney Co.

Chinese property giant Dalian Wanda Group plans to sell tourism projects and hotels in the country to Sunac China for $9.3 billion, dialling back its ambitions in an area it considered key to its future growth until recently.

The surprise sale gives Wanda possible revenue to pay down debt that has soared during an aggressive expansion into entertainment, tourism and other consumer businesses. The deal would be the second-largest real estate sale in China's history, reported Reuters.

After the deal, Wanda will still be responsible for the operation of the properties, and Sunac will pay an annual management consulting fee for 13 theme parks of 50 million yuan each to Wanda for a contract term of 20 years, according to the statement.

Wanda Hotel Development's stock price spiked 2.5-fold at one point on Monday, but it reversed direction on Tuesday, tumbling 12.94% to HK$0.74.

S&P downgraded Wanda Commercial in December citing rising financial leverage and slower-than-expected asset disposal at China's largest commercial developer.

Hudson Valley commuters face "Summer of Hell"
To minimize disruption to the commuter services, Amtrak historically has done most of the track work overnight and on weekends. The LIRR urged riders to visit their new website, lirrsummerschedule.com, to help commuters navigate the changes.

The CBRC had expressed concerns about the level of debt taken on by some of China's biggest groups, against a background of skyrocketing debt at corporate level.

In recent years, Beijing encouraged companies to invest overseas to find new markets, access technology and increase China Inc's influence.

Wanda had earmarked a more than 300 billion yuan investment for its cultural and tourism projects.

Sunac halted trading of its shares in Hong Kong yesterday, pending the announcement, after closing 6.9 percent lower on Friday. The two companies will sign a detailed agreement by the end of this month. It has also been very active globally, buying United States cinema chain operator AMC Entertainment Holdings Inc and taking a controlling stake in USA film studio Legendary Entertainment a year ago.

Shares in Wanda Hotel Development surged more than 150 per cent after the news.

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