Wang Jianlin's stake in Wanda Film once again has aroused speculation and concern about the future direction of Wanda Group. With less than a month to go until the end of 2023, Wanda Group faces significant challenges. In order to understand why Wang Jianlin gave up his beloved Wanda movie at this time, we have to start with the situation of Wanda Commercial Management.
Wanda Commercial Management is a strong team under Wanda Group, with an investment of more than 300 billion yuan. At that time, Wanda Group planned to return to the A** field, but it failed to do so. Subsequently, Wang Jianlin decided to split Wanda Commercial Management and go public in Hong Kong, for which he raised more than 300 billion yuan of investment. However, these investors are not philanthropists, and they have signed a VAM agreement with Wanda. Under the agreement, Wanda must list in Hong Kong by the end of 2023 or Wanda will be forced to buy back all its shares and pay 12% interest. In the current environment, if Wanda Commercial Management fails to go public on time, Wanda Group will need to pay tens of billions of yuan to buy back shares. However, Wanda's previous applications for listing have been rejected by the CSRC, and now there are less than 20 days before the deadline, and it is clear that it is almost impossible for Wanda Commercial Management to complete the listing in this short period of time. Therefore, Wang Jianlin urgently needs to find a solution to ensure the stability of the company's capital chain and avoid funding problems at this critical moment.
In addition to maintaining the capital chain, Wang Jianlin also needs to communicate with investment institutions to reach a consensus. It is said that he has communicated with these investment institutions about postponing the listing time, and intends to postpone the listing time until 2026. However, there are sources that investment institutions do not agree with this plan, and they still hope that Wanda will go public on time, or Wanda will pay for the repurchase of shares. It can be said that Wang Jianlin has fallen into a lot of difficulties. This can also be seen as a pit dug by Xu Jiayin for him. Why?Because in 2017, Evergrande raised a total of 130 billion yuan in VAM financing, and the VAM goal is to be listed before the end of 2020. However, Evergrande failed to go public, but Xu Jiayin successfully persuaded most of the investment institutions to give up the repurchase right and convert the shares into ordinary shares. And the final result is that in 2021, Evergrande's market capitalization will become a junk stock. That is to say, those investment institutions that have not repurchased their shares now hold Evergrande** basically become garbage**, while Shandong High-speed, the only one that insists on repurchase, has avoided the market value ** and made billions of yuan. Therefore, these investment institutions now have a lesson from Xu Jiayin and Evergrande, and they will definitely not compromise easily on Wanda's situation.
Conclusion: Wanda Group is facing severe challenges, and Wang Jianlin, as the founder and helmsman of the company, has to face difficult choices. In less than a month, he had to find a solution, not only to ensure the stability of the company's capital chain, but also to reach a consensus with the investment institutions to postpone the listing or arrange other solutions. However, this is not an easy task, because investment institutions have already had a case of Evergrande's failure, and they are unlikely to give up their interests easily. There is still uncertainty about the future direction of Wanda Group, and only Wang Jianlin can find a practical solution in a short period of time to help Wanda overcome the current predicament. In China's business community, this incident has undoubtedly attracted widespread attention, and people are paying close attention to the future development of Wanda Group, hoping that Wang Jianlin can turn the danger into a better future and lead Wanda to a better future.