Recently, Wanda Films announced that it would transfer the remaining 51% stake to China Ruyi, which means that Wang Jianlin will lose control of Wanda Films. As Wang Jianlin's favorite, why did Wang Jianlin give up Wanda Movies at the end of the year?The reason starts with the situation of Wanda Commercial Management.
Wanda Commercial Management, a subsidiary of Wanda Group, is preparing to return to the A** market and plans to list in Hong Kong. However, the previous listing applications were rejected by the CSRC. In order to raise funds, Wang Jianlin decided to split Wanda Commercial Management and raised more than 30 billion yuan from investment institutions. However, these investors are not philanthropists and have signed a VAM agreement with Wanda, stipulating that Wanda must be listed in Hong Kong by the end of 2023. If Wanda is unable to complete the listing on time, it will have to buy back all its shares and pay 12% interest.
Under the current circumstances, if Wanda Commercial Management cannot complete the listing within more than 20 days, Wanda Group will have to spend tens of billions of dollars to buy back shares. Wang Jianlin is facing a huge challenge, and he must maintain the stability of the company's capital chain to avoid financial problems at this time. Parallel to the capital chain, it is important that Wang Jianlin must also fully communicate with investment institutions and reach a consensus.
It is reported that Wang Jianlin has communicated with investment institutions and plans to postpone the listing time to 2026. However, there are sources that the investment institutions do not agree with this plan, and they still hope that Wanda will go public on time, or ask Wanda to buy back shares with its own funds. This situation can be said to be that Xu Jiayin harmed Wang Jianlin. The reason is that in 2017, Xu Jiayin's Evergrande Group conducted a VAM financing and raised a total of 130 billion yuan. The content and duration of the VAM are similar to those of Wanda, and the listing will be completed before the end of 2020. However, Evergrande did not succeed in going public, but Xu Jiayin succeeded in convincing most of the investment institutions to give up the repurchase right and convert the shares into ordinary shares. As a result, we all know that in 2021, Evergrande will have a thunderstorm and a market value all the way, and now it has almost become a junk stock. In other words, the Evergrande ** held by these companies that did not repurchase back then has almost become waste paper. In contrast, Shandong High-speed insisted on asking Evergrande to repurchase shares and has made billions of profits so far. Therefore, in a situation like Wanda's, these investment institutions have already learned the lessons of Evergrande, so they will definitely not give in easily.
Faced with Wanda Films' challenges and the urgency of time, Wang Jianlin had to adopt appropriate strategies to maintain the company's stability and find solutions. He needs to fully communicate with investment institutions and win their understanding and support. Here are some possible coping strategies:
1.Strengthen the capital chain: Wang Jianlin should strengthen the management of Wanda Group's capital chain to ensure that there are no financial problems at this critical moment. He can seek the cooperation of other investors to share risks and stabilize funds**.
2.Postponement of listing: Wang Jianlin has discussed with investment institutions the possibility of postponing the listing. He can fully elaborate on the current predicament and propose detailed plans and solutions in order to gain the support of investment institutions. At the same time, he can also consider communicating with the regulatory authorities to obtain the corresponding exemption or grace period in special circumstances.
3.Seek other financing channels: In addition to maintaining communication with investment institutions, Wang Jianlin can also seek other financing channels, such as bank loans and bond issuance, to make up for the funding gap and ensure the normal operation and development of Wanda Films.
4.Broadening the business model: In addition to relying on IPO financing, Wang Jianlin can also consider broadening the business model of Wanda Films to find more revenue**. He can explore film derivatives, film and television production, digital ** and other fields to stabilize the company's financial position in a diversified way.
The predicament faced by Wanda Group highlights the challenges of Wang Jianlin's management and capital operation. It can be seen from Evergrande's experience that Evergrande's VAM financing strategy at that time ultimately brought great risks and uncertainties. In today's Wanda film incident, Wang Jianlin is faced with a similar situation, and he must be careful in his relationship with investment institutions to avoid repeating the mistakes of the past.
In addition, for entrepreneurs, in addition to vision and courage, management skills and crisis response skills are also crucial. In the face of adversity, Wang Jianlin needs to remain calm, assess the situation, and be able to deal with it flexibly. He should learn from his past experience, but also learn to Xi market changes and industry dynamics, and constantly adjust and optimize his corporate strategy.
In general, the enlightenment given to us by the transfer of Wanda Film is that in business, entrepreneurs should maintain keen observation and adaptability, be good at seizing opportunities, and at the same time have a long-term vision and sufficient control of risks. Only in this way can we be invincible in the fierce market competition and achieve the sustainable development of the enterprise.