China’s Wanda Film Unit Has Raised $2.4-B

China’s Wanda Film Unit Has Raised $2.4-B

$AMC

According to an offering documents filed with the appropiate regulators, the Chinese conglomerate sought to raise $1.5-B, and has already exceeded that target.

Chinese real estate and investment conglomerate Dalian Wanda Group has raised $2.4-B for its film production subsidiary, the company’s vice president said.

Wanda had been seeking to raise about $1.5-B since February for its Wanda Pictures unit from a share sale to domestic Chinese investors.

At a briefing in Hong Kong Thursday, Dalian Wanda Group vice president Liu Zhaohui announced that the sale was already $900-M oversubscribed.

Wanda’s fundraising plans emerged shortly after it acquired Thomas Tull’s Legendary Entertainment for $3.5-B in January. The successful fundraising round is expected to help Wanda offset the acquisition costs of Legendary, as the company continues its ambitious expansion in the film sector.

The strategy is reminiscent of the “asset-light” approach that Wanda Chairman Wang Jianlin has employed in the company’s core real estate business, using outside investment to finance expansion.

“The best business is to do your business with investments from others,” Wang said in a lecture at the Shenzhen stock exchange last Spring.

Wanda indicates that it will seek a public listing for its movie production and distribution affiliates.

A document filed with Chinese regulators earlier this month revealed that Wanda now plans to execute a reverse IPO, folding Wanda Pictures including Legendary into its publicly traded movie theater business, Wanda Cinema Line.

The cinema chain, China’s largest by screen count.

Wang has said that he hopes to control no less than 20% of the global film business by Y 2020. The company 1st made international news in the movie business when it acquired a 75% stake in US film exhibitor AMC Entertainment for $2.6-B in Y 2012.

On 4 March, Wanda controlled AMC agreed to buy Carmike Cinemas in a $1.1-Bcash deal. Once it closes, the acquisition will combine to create the world’s largest theater circuit with 8,400 screens. Wang has expressed interest in expanding his global theater network even further by buying a chain in Europe or the UK.

Have a terrific weekend.

HeffX-LTN

Paul Ebeling

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