Top Story: Country Garden withdraws from Wanda Commercial Management, although it loses 1600 million yuan but urgently needed cash flow!
The delicate and soft morning light sprinkled on the city of Zhuhai, but for Country Garden Real Estate, the day brought a significant transaction. In an intriguing equity deal, Country Garden Properties paid a staggering RMB306.9 billion yuan**, will be in the hands of Zhuhai Wanda Commercial Management Group 179% of the shares were sold. Although this caused Country Garden to suffer about 1A loss of $600 million, however, the deal brought much-needed cash flow to the company. Country Garden explained that this decision is to avoid future uncertainties, and to make positive strategic adjustments to solve the offshore debt problem and carry out overseas restructuring.
Past financing agreements have revealed that Country Garden had participated in the capital injection of Zhuhai Wanda Commercial Management, and the VAM agreement was announced in the prospectus, providing for share buybacks by the end of 2023. However, Wanda Commercial Management Group has signed a new investment agreement with investors, and a group of investors led by PAG Investment Group will reinvest in Zhuhai Wanda Commercial Management after the investment period expires in 2021. Despite this, Country Garden opted out of this reinvestment plan.
In addition, Country Garden Real Estate has also taken a series of measures in terms of internal debt. The bondholder, named "22 Bidi 02", successfully sold back some of the bonds, providing some relief from the losses suffered by the company in the equity transaction. Despite the company's losses, the market's positive attitude towards it is reflected in the stock price, indicating that investors are happy with the company's strategy adjustment.
Overall, the exit of Country Garden Real Estate's equity transaction not only affected the company's financial position, but also made an important decision for future strategic adjustment, especially in resolving overseas debts and carrying out overseas restructuring.