Dalian Wanda Group Co.’s chairman acknowledged some difficulties at the Chinese conglomerate during an internal meeting last week, people familiar with the matter said, after some of its dollar bonds plunged to record lows.
(Bloomberg) — Dalian Wanda Group Co.’s chairman acknowledged some difficulties at the Chinese conglomerate during an internal meeting last week, people familiar with the matter said, after some of its dollar bonds plunged to record lows.
Wang Jianlin said during the management gathering Friday that Wanda can overcome its challenges, including a delayed initial public offering of the group’s mall operator unit, according to the people, who requested anonymity discussing private matters.
Dalian Wanda didn’t immediately comment when reached Tuesday.
Concerns about Wanda’s debt have increased amid uncertainty about the potential listing of mall unit Zhuhai Wanda Commercial Management Group Co., which the group first filed for in 2021. The third application for the proposed IPO lapsed this week. Loans related to the deal and other debt set to come due this year have been factors pummeling investor sentiment.
Two dollar bonds issued by a Dalian Wanda unit early this year now trade below 60 cents, according to Bloomberg-compiled prices, levels typically considered distressed.
There have been signs of some procedural steps necessary for any eventual IPO. The China Securities Regulatory Commission marked Zhuhai Wanda’s application as “received,” according to a list on the regulator’s website.
Wanda is still trying to get signoff from the regulator.
The CSRC last month sent a letter inquiring about Zhuhai Wanda’s listing as the repurchase of about 30 billion yuan ($4.3 billion) in equity from pre-IPO investors may be required if the company doesn’t go public by the end of this year. The listing, which could have raised about $3 billion, was first delayed in March 2022 because of market volatility, Bloomberg News reported at the time.
–With assistance from Emma Dong and Jun Luo.
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