Wang Jianlin only has less than 1 month left to sell Wanda Films again
Wang Jianlin**Wanda Films: Why should you give up your favorite film?
Wanda Pictures recently said that Wanda will transfer 51% of the equity of Wanda Pictures, a Chinese Ruyi holding company, so that it will lose its controlling stake in Wanda Pictures. Wang Jianlin's favorite is Wanda, why did he abandon his company at this juncture?
Why: To understand this decision, it's important to understand the current state of Wanda Commercial Management. One of Wanda's main businesses, Wanda Commercial Management Co., Ltd., is preparing to return to the A** field, which is also Wanda's focus in the recent period. However, this time's IPO was full of twists and turns, after Wanda's IPO was rejected several times by China's ** Regulatory Commission. With the deadline of less than a month, Wanda Enterprise Management is struggling to achieve its goal of a public offering. If Wanda Commercial Management fails to list in Hong Kong at the end of 2022, Wanda will have to repurchase all its shares at a high interest rate according to the Share Transfer Agreement signed between the original shareholders and them.
The dilemma faced:
In the current complex environment, it is indeed a big problem for Wanda Commercial Management Company to achieve the goal of "mythology" in such a short period of time. Therefore, Wang Jianlin must do everything possible to maintain the company's cash flow to avoid financial difficulties at the most critical juncture. In addition, he had to communicate with investment banks and sign a deal with them. It is said that Wang Jianlin has approached major investment banks to postpone its IPO until 2026, but a person familiar with the matter said that investment banks will not agree to such a proposal, and they still expect Wanda to go public as scheduled, otherwise it will be acquired by itself.
Tens of billions of gambling contracts: Xu Jiayin gave a "pit".
Many people wonder why Wanda would make such a demanding bet with an investment companyIn fact, Evergrande also suffered the same situation, that is, in 2017. At the beginning, Evergrande signed equity pledge investment contracts with a total of 130 billion yuan with a number of enterprises, which, like Wanda, was to complete the IPO by the end of 2020. However, Evergrande's IPO did not achieve the expected results, and Xu Jiayin finally moved the vast majority of investors to let them change ** back to ordinary**. But then Evergrande had financial problems, the stock price plummeted, and finally became a "rotten **", and Shandong High-speed insisted that Evergrande repurchase and profit billions from it.
Public statements on these investment organizations:
With the lessons of Evergrande and Wanda's affairs, major investors will definitely not give up. They all know that if they agree to postpone the issuance, or let Wanda buy Evergrande's ** by itself, then it is very likely that they will take a lot of risks in the future, just like not buying Evergrande's **. Therefore, for Wanda, it is either to go public as scheduled or to repurchase on its own, which is a big obstacle for Wang Jianlin.
Wang Jianlin's problems and reflections.
Wang Jianlin is facing great tests and pressure at this critical juncture. For Wanda Commercial Management, completing the IPO in a short period of time, without cash flow disruption, and the transaction with the investment bank, is a very critical issue.
He could have talked to the investment bank, asked them to put things off for a while, and then came up with a convincing reason and made them agree. In the meantime, he may seek other ways to appease these investors, such as raising more money to buy it back. Of course, there are also financial constraints and risks that need to be taken into account.
Brief summary. The difficulties faced by Wanda Group cannot be ignored. The urgent requirements of Wanda Commercial Management Company and the strong demands of major investors forced Wang Jianlin to find a way in a short period of time. To ensure Wanda's future growth, he had to keep a clear head and negotiate with investment banks to find out where the interests of both parties were. The best way can only be sought with wisdom and decisiveness. In the face of all kinds of difficulties, we firmly believe that Wang Jianlin will be able to overcome the difficulties and fulfill Wanda's vision.