Wanda mulls taking property unit in HK private

The logo of the Dalian Wanda Commercial Properties is seen at a news conference in Hong Kong March 31, 2015. [Photo/Agencies]

Billionaire Wang Jianlin is considering privatizing Dalian Wanda Group Co's property unit in Hong Kong in a deal worth at least HK$31.3 billion ($4 billion), Hong Kong Economic Times reported Thursday.

The group is considering an offer of HK$48 or more for each H-share in Dalian Wanda Commercial Properties Co, 24 percent above the stock's closing price in Hong Kong on March 30. The shares surged 21 percent to HK$47.20 in Hong Kong on Thursday.

The newspaper said that the domestic shareholders are demanding strongly a comeback to A-share market which triggered the move.

A report from HSBC Securities on Wednesday showed that the forecast of the net asset value per share of the group is adjusted downwardly to 87.8 yuan as well as its target price to 65 yuan.

According to an unnamed analyst, Wanda Commercial's move to list in H-share was triggered by the tightened financing channels back then in Chinese mainland. However, Chinese mainland now has a lower cost of issuing bonds.

It will be hard for Wanda Group to spin off assets to list in H-share market, the newspaper reported, citing the analyst.

Earlier this year, Wanda Commercial's parent group forecast overall sales will fall this year as a slump in its main real estate business overshadows gains from its burgeoning entertainment operations.