Dec 05, 2018 (China Knowledge) - Chinese retail-chain Yonghui Superstores, which has tech giant Tencent Holdings as an investor, will be purchasing a minority 1.5% stake in Wanda Commercial Management Group for RMB 3.5 billion.
The share purchase will be made in two cash installments at a purchase price of RMB 52 per share. Due to the cash purchase, Yonghui will be incurring a 6% interest annually or RMB 210 million, which will lead to a contraction in profits for the company by about 10%.
Wanda Commercial Management Group is a real estate platform and commercial arm of Wanda Group, one of China's largest property developers.
The company has been looking to list on China's A-share market since it was taken private from the Hong Kong stock exchange in September 2016. The company submitted its prospectus for listing to Chinese regulators a year earlier in September 2015.
Revenue for the company was RMB 51.8 billion in the first half of this year with a profit of RMB 15.8 billion. At the end of the first 6 months this year, the company had RMB 634 billion worth of assets.
Tencent Holdings, Suning, JD.com and Sunac China Holdings hold a combined 14% stake in the company which was acquired when it delisted from the Hong Kong bourse for RMB 34 billion.
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