Sunac China Holdings Ltd. agreed to buy hotels, land and projects from Dalian Wanda Group Co. for 63.2 billion yuan ($9.3 billion) in China's largest property deal, as billionaire Chairman Sun Hongbin moves to take advantage of competitors shedding assets. The agreement is expected to be finalized in a formal deal signed later this month.
Sunac is to buy 76 hotels from Wanda through a unit and is to purchase a 91 percent stake of 13 cultural and tourism projects, according to a statement posted on Wanda's Web site.
With the latest deal, Sun targeted assets from fellow-billionaire Wang Jianlin, who was among the most acquisitive Chinese tycoons up until a year ago. But it seems the Mouse has won: Wanda plans to sell most of its tourism businesses in China, including theme parks.
But Beijing began previous year to roll out measures to stanch the flood of cash overseas, fearing capital flight, a weakening currency and expressing concerns over "irrational" investments.
Wanda admitted two weeks ago that China's banking regulator had ordered an inspection of potentially risky loans to major Chinese companies that have invested aggressively overseas.
Microsoft is cutting 3000 jobs as part of a major reorganization
Microsoft now has around 121,000 employees worldwide, including 71,594 in the U.S. , according to the company's website. Microsoft is reportedly cutting up to 3,000 staff globally as it focuses on the competitive cloud computing sector.
"Selling assets, which is the last resort for big firms like Wanda, means that Wanda is running out of options to raise fund through normal financing channels", said Ivan Han, Shanghai-based senior analyst with financial information provider Morning Whistle.
It is thought that the deal will go towards reducing Wanda's commercial debt pile.
It's less than a year since Wanda founder Wang Jianlin, who regularly vies with Alibaba's Jack Ma for the title of China's richest man, was boasting that Wanda's theme parks would outsell Disney's. The tourism sites will retain Wanda's name.
Sunac yesterday halted trading of its shares in Hong Kong pending an announcement of a "very substantial" acquisition, it said. Shares in Wanda Hotel Development surged more than 150 percent after the news.