Abu Dhabi Wealth Fund ADIA Eyes Stake in Wanda Mall Unit
Talks have been undertaken by ADIA, the Abu Dhabi wealth fund, regarding the possible acquisition of a share in Zhuhai Wanda Commercial Management Group Co.
Abu Dhabi Investment Authority (ADIA) is considering acquiring a minority stake in the mall operator owned by Dalian Wanda Group Co., anonymous sources familiar with the matter told Bloomberg.[1]
Talks have been undertaken by ADIA, the Abu Dhabi wealth fund, regarding the possible acquisition of a share in Zhuhai Wanda Commercial Management Group Co.
Following December’s agreement to forego repaying pre-IPO investors, billionaire Wang Jianlin ceded control of Zhuhai Wanda in exchange for an ADIA investment.
As stipulated in the original investment agreement, if Zhuhai Dalian was unable to complete its first public offering by the end of 2023, Wanda would reimburse investors for 30 billion yuan ($4.2 billion) plus interest.
Wang owns 40% of Zhuhai Wanda, with the remaining 60% being held by the private equity firm PAG and other investors. In a capital round for Zhuhai Wanda in 2021, PAG contributed roughly $2.8 billion.
In the December purchase, the mall operator's valuation was less than 100 billion yuan ($14.07 billion), which is less than half of what the business brought in during its fundraising three years prior.
Zhuhai Wanda managed about 500 malls around China as of the end of November, including 204 that were owned by independent third parties.
In November, the company submitted its application for a Hong Kong listing for the fifth time. According to Zhuhai Wanda's preliminary prospectus, in addition to PAG, a prestigious list of pre-IPO investors included Ant Group Co., Citic Securities Co., and Tencent Holdings Ltd.