Tuesday 6 February 2024

#AbuDhabi Wealth Fund ADIA Considers Stake in Wanda Mall Unit - Bloomberg

Abu Dhabi Wealth Fund ADIA Considers Stake in Wanda Mall Unit - Bloomberg

Abu Dhabi Investment Authority is considering buying a minority stake in Dalian Wanda Group Co.’s mall operator, people familiar with the matter said, as the unit revamps its shareholding structure.

ADIA, as the Abu Dhabi wealth fund is known, has held initial discussions over the potential stake purchase in Zhuhai Wanda Commercial Management Group Co., the people said. ADIA may buy shares from existing holders, said the people, who asked not to be identified as the information is private.

An ADIA investment would come after billionaire Wang Jianlin gave up control in Zhuhai Wanda in December as part of a landmark agreement to avoid repaying pre-IPO investors. Under the terms of the original investments, Wanda agreed to repay investors 30 billion yuan ($4.2 billion) plus interest if Zhuhai Wanda could not get its initial public offering done by the end of 2023.

Private equity firm PAG and other investors hold a combined 60% in Zhuhai Wanda, while Wang holds the remaining 40% via another company. PAG invested about $2.8 billion in Zhuhai Wanda in a 2021 funding round. The mall operator is valued at below 100 billion yuan in the December deal, less than half of what the unit fetched in the fundraising three years ago.

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