Wanda Business Is Desperate To Return To Business.

In September 20th, the final date of Wanda commerce was designated as the withdrawal of H-shares. In order to find a reasonable valuation, Wanda commerce is moving forward on the road of privatization.

Wanda Commercial announced the delisting schedule at the same time, once again emphasized the determination to return to A shares, said it would return to A shares through a variety of channels.

Wanda business is desperate, but there are many obstacles ahead. First of all, we should clear up the doubts about the low price of privatization on the privatization road. Secondly, we should overcome the policy and market obstacles of the existence of backdoor or IPO. More importantly, we must tell the story of a sufficiently attractive story in the ten years when the real estate market has bid farewell to gold, in exchange for the dream of high valuation.

Less than two years after landing in the capital market of Hongkong, and Wanda's commercial determination, which has created the largest IPO of the HKEx in 2014, has been delisted from H-share, which is not related to its high degree of courtesy in Hongkong's capital market. In the eyes of Wang Jianlin, A shares will be the best destination for Wanda business to find a reasonable valuation.

In yesterday's announcement, Wanda commerce made it clear that it would continue to consider listing A shares in various ways.

So, what are the specific ways and the ways of operability? In the view of the industry, Wanda business can choose the path of borrowing or IPO, but no matter which way it is, there is a certain degree of difficulty.

"The size of the shell is too large to contain hundreds of billions of market capitalization shell almost does not exist, too small shell after listing, stock prices soaring too much, there is too big arbitrage space, this is the regulators do not want to see."

A private person in Beijing explained to media reporters.

Another person who declined to be named said: "for Wanda Commercial, backdoor is the fastest way.

But at present, the A share market has no major defects and relatively clean shell resources are relatively few, and in recent years, housing prices are not the enterprises that regulators encourage to list.

In addition to backdoor, IPO is another alternative to Wanda's business.

In fact, compared to backdoor, Wanda is more enthusiastic about IPO.

In November 13th last year, Wanda business had already disclosed the prospectus of A shares on the official website of the securities and Futures Commission, which intends to issue no more than 250 million shares of A shares and raise about 12 billion yuan.

In addition, at the last annual general meeting in May 25th, Wanda Commercial secretaries Xu Yong also said that Wanda Commercial return to A shares will still adopt the form of IPO.

However, in Wanda business, IPO will be a race against time.

"Backdoor listing is a mainstream practice to return to A shares, but in view of the previous crackdown on all kinds of shell phenomenon, Wanda will choose the traditional IPO way to return to A shares.

It should be said that the pressure and difficulty of Wanda itself is not great in terms of corporate performance and competence in the capital market.

In Yan Yuejin's view, although Wanda IPO is feasible, at present, the most relaxed time point in the domestic market IPO has passed, the future may be more and more stringent, and Wanda Commercial as housing enterprises, IPO will also increase the relative difficulty.

Real estate and Finance Senior commentator Huang Lichong also said: "even if Wanda returns to A shares to be successful, at least one year later, A shares are still relatively low. Wanda's volume is too large. Too many additional issuance will lead to excessive blood loss and smash, so in this case, the environment of Wanda's issuance does not exist in a short time."

Despite the four doubts, Wanda's decision to withdraw H-shares remains unchanged.

Yesterday, Wanda further revealed the delisting timetable: the final date for H-share trading in September 13th and delisting from H-share in September 20th.

Wanda Commercial has also prepared for the delisting. The consortium investors have paid at least 20% of their promised investment, which amounts to more than HK $9 billion.

The price of Wanda Commercial privatization was HK $52.8 / share, which was questioned by the market at the beginning of its disclosure.

More recently, Wanda Commercial shareholders have made a stand outside, and this has also changed the success of Wanda business in September 20th.

The first thing to question is the sixth largest shareholder, the Holland APG fund. The reason for the fund is that the privatization price of HK $52.8 is not attractive, so "there is concern about the privatization plan".

Following up with objections is the third largest shareholder of Wanda business, BlackRock. The average price of Wanda business is HK $58 / share. According to the privatization of Wanda business, the loss is predictable.

According to the rules of privatization of Wanda Commercial, only when no more than 10% investors oppose and more than 75% investors agree, Wanda Commercial privatization can be successfully completed. The two shareholders hold a total of over 10% of Wanda Commercial shares. Therefore, once the two voted against it, Wanda Commercial privatization will not be able to take place.

"For Wanda business, this may be a tangled content."

Yan Yuejin, research director of the think-tank center of Yi Ju Research Institute, said.

Although there are uncertainties, but insiders also said that Wang Jianlin had already made adequate preparations to clear all obstacles.

In June 27th, Wanda Commercial said that it had launched the privatization of full tender offer. Wanda Group has exercised its power to introduce new consortium investors. In addition, all domestic shareholders have already made an irrevocable undertaking by domestic shareholders, including support for delisting.

Data show that in the total share capital of Wanda Commercial 4 billion 527 million, only 652 million of Hong Kong stocks were issued, and the remaining 3 billion 874 million 800 thousand shares were domestic stocks, accounting for more than 85%.

"Prior to this, the withdrawal of the stock market also won the full vote of 100% of the domestic shareholders. Therefore, other shareholders questioned or just a small episode, will eventually make a compromise, Wanda Commercial preparation for privatization, so the September 20th delisting is not difficult."

A private person analysis said.

It is also worth mentioning that Wanda had made a bet that Wanda had not been able to list on the A stock market for two years or before August 31, 2018 (whichever was later). Wanda Group will buy back all the shares and pay 12% and 10% interest to overseas and domestic investors respectively.

It can be seen that Wanda business can only succeed in its failure to return to A shares.

According to the company structure disclosed by Wanda Commercial landing port, Wanda integrated the three major sectors of the company's commercial real estate business into the listed companies, including the long-term development of property leasing, development and sale of property, development and hotel operation.

In the data previously disclosed, in 2013, the total income of Wanda reached 186 billion 640 million yuan, the commercial real estate company earned 145 billion 620 million yuan, the rental income of the business management company was 8 billion 560 million yuan, and the hotel management company earned 3 billion 630 million yuan.

However, with the acceleration of Wanda Commercial "de real estate", the specific achievements of the above three plates also reflect the strategic thinking of Wanda Group's overall pformation from side to side.

Take the real estate sales business as an example, in 2013, 2014 and 2015 1-6, the proportion of Wanda business main business income was 86.41%, 84.98% and 67.97% respectively, and the trend of all the way down was very obvious.

Over the same period, the proportion of leasing and business management business climbed to 20.62%, and the proportion of hotel business revenue increased to 7.25%.

"Because the volume is too large, will Wanda business return to A shares, will it be split first? I think it is unlikely.

First of all, the proportion of real estate sales is declining, and the era of profiteering in the real estate industry has passed. The story is no longer good. Secondly, the volume of Wanda leasing and business management and hotel business is too small, and the possibility of independent listing is even less.

So Wanda Commercial return to A shares, is still in line with the existing plate structure as a whole listing.

The above anonymous industry is an analysis.

The goal of the fourth pformation of Wanda Group is: to form four modules of Commerce, culture, finance, and electricity supplier by 2020.

Wanda currently owns Wanda Commercial Listed Company platform in the commercial sector, Wanda plate owns Wanda cinema and AMC platform for two listed companies in the US stock market. Whether the Wanda Group will reorganize its business in the future, and accelerate the return of Wanda business? In this regard, the industry believes that the space is relatively narrow. After all, besides the culture and commerce, there are no substantive breakthroughs in the other two business sectors, finance and electricity providers.