China's Wanda Values Movie Production Assets at $5.7B

Getty Images
Wanda Group chairman Wang Jianlin

The conglomorate's Wanda Pictures subsidiary controls Legendary Entertainment, which it acquired for $3.5 billion earlier this year.

Dalian Wanda Group, the Chinese real estate and investment conglomerate headed by China's richest man, said Thursday that its publicly listed movie theater chain subsidiary will acquire its film production arm, Wanda Pictures, for $5.7 billion in cash and stock.

Wanda Cinema Line is China's largest movie theater operator. Dalian Wanda Group, the parent company, acquired Thomas Tull's Legendary Entertainment for $3.5 billion earlier this year, and then moved the Hollywood studio under its Wanda Pictures subsidiary.

Wanda Cinema Line was listed on the Shenzhen Stock Exchange in January 2015. The company suspended trading in February so that it could absorb Wanda Pictures, bringing two of Wanda Group's film subsidiaries under one publicly listed company. Wanda Group chairman Wang Jianlin also has expressed interest in listing Wuzhou Film Distribution, the group's movie distribution arm.

In a filing with the Shenzhen stock exchange, Wanda Cinema Line said it plans to raise up to $1.2 billion in a private placement of shares to help fund cinema construction and replenish working capital.

"The completed transaction will help the listed company set a global strategy in consolidating film assets at home and abroad," Wanda Cinema Line said.


 

comments powered by Disqus