Wang Jianlin spent 38 billion yuan to buy 108 billion Wanda Commercial Management shares, making huge profits?
Wang Jianlin and Wanda Group temporarily got rid of the predicament of the VAM crisis, and by reaching a new war investment agreement, they relieved the pressure to immediately return the principal and interest of the 38 billion yuan investment. This is good news for Wanda, which is in dire need of money, but the price for Wang Jianlin could be high. After the renegotiation, the company received more capital, and Wang's actual shareholding fell to 40 percent, while the company's shareholding increased to 60 percent. Based on the August 2021 valuation, the $38 billion investment means that the equity in the hands of the war pitchers is worth about $108 billion. However, we must consider two important factors.
First of all, the valuation is based on the situation in 2021, and the current national real estate market is in a period of adjustment, and the market value of listed real estate companies has fallen significantly. Therefore, it is debatable whether the valuation of Zhuhai Wanda Commercial Management can still reach 180 billion yuan, and if the valuation is less than 180 billion yuan, the value of 60% of the equity in the hands of the war investors will also be reduced accordingly.
Secondly, according to the announcement of Wanda Group,"Taifeng and many other old shareholders and new investor shareholders participated in the investment", which means that in addition to the old investors, there are new investors joining the battle group. These new investors have to pay a certain amount of investment in order to receive the shares. In this way, Wang Jianlin can continue to control the base of 38 billion yuan, and then obtain billions of yuan or even tens of billions of yuan from new investment, which is equivalent to part of the equity after obtaining new capital.
The exact investment plan has not yet been announced, so it is not possible to determine the exact amount, but more definite information may be announced in the future. In short, it is impossible to buy assets worth 108 billion yuan for 38 billion yuan, but it is certain that Wang Jianlin paid a lot of money in order to solve the VAM crisis. The routine of capital operation is"Take advantage of your illness to kill you", the war cast will not be easily compromised. Last year, Wanda raised funds for some important assets, and plans to continue to raise funds in some first- and second-tier cities in the future. Whether the war investors understand the current situation of Wang Jianlin and Wanda Group, no"Put down the butcher knife"What about the pursuit of profit maximization as if it were the goal of capital?
What's more noteworthy is that, in addition to the concession, Wang Jianlin may also have lost control of Zhuhai Wanda Commercial Management. In the old investment agreement, the company held less than 22% of the shares, but after the new agreement was signed, the company's shareholding increased to 60%, while Wang Jianlin's shareholding dropped to 40%. Although Wang Jianlin remained the largest single shareholder, he could not resist the concerted actions of wartime investors. We do not know of any restrictive clauses in the investment agreement regarding the decision-making rights of war investors, such as different suffrage rights for different shareholdings. If there were similar clauses, the situation might be better, but if not, will there be a battle for control? This is a hidden time bomb, and once it is **, the consequences will be unimaginable. Do you remember Zhang Lan, the founder of South Beauty? She was forced out because she failed the gamble. Of course, Wang Jianlin will not necessarily face such a situation, only time will tell.
In short, Wang Jianlin's acquisition of Wanda Commercial Management interests for 38 billion yuan is a high-risk capital gamble. Despite extricating himself from the gambling crisis, it was not easy to acquire these interests, and Wang Jianlin paid a high price. Whether he gave up a controlling stake or faced a struggle for control, he had to start a new battle in the capital market. This story is not over yet, let's wait and see.
Preface. 
Recently, Wang Jianlin's 38 billion yuan acquisition of 108 billion yuan of Wanda's management has attracted widespread attention and heated discussions. It's a game of capital that can be compared to a game, and there are two key numbers that are surprising. 38 billion yuan invested in the purchase of 108 billion yuan of assets, which means that the value of equity in the hands of war investors has doubled. However, in this game, Wang Jianlin wants to make a profit, what is the truth? This article will provide an in-depth analysis of this important equity transaction, taking a different perspective on the history and impact behind it.
The truth revealed by the key figures.
The share swap deal was an investment of 38 billion in exchange for a 108 billion stake in Wanda Commercial Management, and the war investment appeared to be very profitable. However, these two key figures must be deciphered to reveal the real picture.
First of all, it should be pointed out that this valuation is based on 2021, and the domestic real estate market is currently in a period of adjustment, and the market value of listed real estate companies has fallen significantly. Therefore, whether the valuation of Zhuhai Wanda Commercial Management can reach the level of 180 billion yuan has become the focus of controversy. If valuations fall below this level, the value of 60% of the equity in the pitchers will be reduced accordingly.
Secondly, it is mentioned in the new investment agreement"Participation of several existing and new investor shareholders such as Taifeng", which means that in addition to the old investors, there are new investors who have joined the ranks of war investors. These new investors have to pay a certain amount of investment to get the shares. As a result, Wang Jianlin may have received a large amount of money for new investments while continuing to hold 38 billion yuan. This means that the equity he bought for $38 billion could be worth more. Since the specific investment plan has not yet been announced, we cannot determine the actual amount and can only wait for more definite news.
Wang's bloodletting and capital pressure.
Wang Jianlin and Wanda Group have been trying to raise funds for a long time, which has led to them having to ** major assets. In addition to this 38 billion investment, Wanda also has a controlling stake in Wanda Films, as well as some Wanda Plazas, and plans to continue to be located in first- and second-tier cities in the future. All of these measures are taken in response to financial stress.
However, while these efforts brought short-term economic relief to Wang, they also cost him dearly. The game with war investment is cruel, and the capital market will never be soft. In the gambling crisis, war investors took more shares, and Wang Jianlin's actual control fell to 40%. Although he remains the largest single shareholder, it is difficult for him to resist the joint action of the war investors.
It is unclear whether the new investment agreement contains restrictive clauses on the decision-making power of war investors. If there were, the situation would be better; If not, there may be a struggle for control in the future. This is a hidden time bomb that, once detonated, can have unimaginable consequences. In the past, entrepreneur Zhang Lan was forced to leave the company due to a failed gamble. In the future, whether Wang Jianlin will face a similar situation, only time will tell.
In short, Wang Jianlin's acquisition of Wanda Commercial Management's equity for 108 billion yuan is a high-risk capital gamble. Although he was temporarily out of the gambling crisis, he also paid a high price. Whether he gave up his equity or faced a struggle for control, he had to face new challenges in the capital market. This story is not over yet, let's wait and see.