Recently, the news of Wanda Film and Television's equity change has aroused widespread attention from all walks of life. The reporter interviewed industry insiders in depth and learned that behind the equity transfer of Songdu Hotel is the strategy adopted by Wang Jianlin to deal with the shortage of funds and the risk of Wanda Commercial Management's listing. With the advancement of this equity transfer, how will the fate of Wanda Film and Television change?What kind of steps will Tencent take to expand its territory in the entertainment field?
It is reported that during the lunch break on December 6, the high-profile Wanda Film released a shocking announcement. According to Wanda Films, Wang Jianlin, the actual controller of the company, and his related shareholders, including Beijing Wanda Cultural Industry Group*** and its wholly-owned subsidiary, Beijing Hengrun Enterprise Management and Development***, are planning to transfer 51% of their equity in Beijing Wanda Investment*** herein referred to as "Wanda Investment") to Shanghai Ruyi Investment Management*** referred to as "Shanghai Ruyi"). If the transaction is successful, the company's control will be apparent
For the industry, it is undoubtedly shocking news that the controlling shareholder status of Wang Jianlin, the head of Wanda Film and Television, has changed hands. The announcement pointed out that Wanda Film has received relevant notices, and this matter not only involves Guangxi Songdu Hotel Management Group, but also involves the interests of Wang Jianlin himself. They plan to transfer a total of 51 percent of Wanda Investment's stake to Shanghai Ruyi. Frame.
In the face of this major equity transfer event, in order to ensure the fair disclosure of information, protect the rights and interests of investors, and avoid stock price changes caused by information asymmetry, Wanda Film and Television actively submitted an application to the Shanghai Stock Exchange in a realistic manner, and decided to suspend ** trading from December 6, 2023, which is expected to last until 2 trading days.
Nonetheless, upon completion of the transaction, Shanghai Ruyi will become the majority shareholder of Wanda Entertainment and will directly hold a 49% stake in Wanda Investment. However, according to China Ruyi's announcement, they do not currently plan to appoint new directors to Wanda Investment's management, nor do they want to interfere too much in its day-to-day operations and management. This means that Wanda Investment will not continue to be a subsidiary of China Ruyi.
Seeing such a result, the industry can't help but think of the previous scene. Earlier, China Ruyi in Hong Kong's main board market revealed on the evening of July 23 that they had taken 226.2 billion yuan acquired all 49% of the shares of Wanda Investment held by Beijing Wanda Cultural Industry Group***. Prior to this, Hong Kong-listed China Ruyi had issued an announcement that they had purchased all the shares of Mythra Property Holdings Limited, a wholly-owned and controlled entity with de facto interests. With the completion of this equity transfer, it is expected to have a significant impact on the company's control structure.
It is worth noting that Tencent is one of the largest single shareholders of China Ruyi. It is foreseeable that after the successful completion of this equity transfer transaction, Tencent's layout in the entertainment sector, especially in the film industry, will be further strengthened. This is also an important manifestation of Tencent's continuous expansion into the asset-light and high-value-added entertainment business in addition to the layout of the real economy.
Analysts believe that Wanda Film is facing huge financial pressure, especially Zhuhai Wanda Commercial Management has encountered various difficulties in the process of Hong Kong stock IPO. Zhuhai Wanda Commercial Management is currently planning to achieve listing on the Hong Kong Stock Exchange, and plans to complete this task by the end of 2023. However, if the listing is not successful within the specified period, the worst-case scenario will be nearly 30 billion yuan of equity to be repurchased. Under such pressure, Chairman Wang Jianlin has unexpectedly launched a project equivalent to five Wanda Plazas this year to ease the pressure on funds.
It is worth mentioning that, according to the public notice of Wanda Yunchuang Technology Development Co., Ltd., this branch has officially changed its name to Shenzhen Wanda Center.
In addition, Wanda has handled the equity issues of Wanda Film and Wanda Investment through multiple equity transfers, with a cumulative amount of nearly 6,766 million yuan. Through these data, it is not difficult for the outside world to see that Wang Jianlin does intend to adopt a more flexible approach in dealing with asset issues.
As an industry leader, Wanda Group's current situation is not optimistic, and the suspension of trading and equity will change hands is undoubtedly the epitome of reality. In the face of various difficulties and challenges, whether Wang Jianlin and his team can find a solution will need to be verified by time and the market. Let's wait and see who can win this game.