The stock of JD.Com Inc (ADR) (NASDAQ:JD) closed at $49.94 losing 1.11% in yesterday’s trading session. Dalian Wanda has received a major lift and that follows recent move by a Tencent-led group to move ahead and make an investment worth $5.4 billion in its property unit. The best part about the deal is the fact that from now henceforth it will be possible to move ahead and ease financial strains as well as the streamlining operations.
Shanghai-based principal at China Market Research Group Ben Cavender opined, “The 34 billion yuan deal for a 14 percent stake in Wanda Commercial could also help the unit get back on track with a plan to relist in Shanghai after a bold and ultimately expensive decision to withdraw from the Hong Kong exchange in 2016.”
Wanda in its most recent statement outlined that it saw the deal as a rather attractive one. Its spokesperson said that the focus on expansions and acquisitions were part of their trusted business strategies and that they looked forward to a brighter future. He went further to outline that Wanda Commercial was with the passage of time becoming a rather attractive mainland IPO candidate.
He revealed that the stake was to be purchased from several existing investors. Those were specifically the ones that incorporated in the $4.4 billion buyout fund which was targeted at delisting Wanda Commercial. Sources indicate that a promise was made to those investors that they would be able to obtain 12 percent in terms of the annual interest if the resulting in Shanghai did not go through in a matter of two years. The mainland regulatory measures have been holding down the Shanghai IPO and thus it has been trying to do everything possible towards the tightening up of liquidity in the real estate sector.
Wanda is optimistic about the future and in close consideration of its new investors it is confident it will succeed in its quest to take the unit public in the shortest time possible. China is rising pretty fast to become one of the global superpowers and that has been attributed by several market observers to be as a result of the activities of the various tech companies.