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MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  Wanda Film Holding Co., Ltd.    002739   CNE100001WW1

WANDA FILM HOLDING CO., LTD.

(002739)
  Report
End-of-day quote. End-of-day quote SHENZHEN STOCK EXCHANGE - 01/15
19.09 CNY   -2.60%
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Alibaba leads $1.24 billion investment in film unit of China's Wanda

02/05/2018 | 07:27am EST
FILE PHOTO: A sign of Alibaba Group is seen during the fourth World Internet Conference in Wuzhen

BEIJING/SHANGHAI (Reuters) - Dalian Wanda Group is selling a $1.24 billion stake in its listed film business to a pair of investors led by Alibaba Group Holding Ltd (>> Alibaba Group Holding), as the conglomerate looks to bring in strategic partners and raise new funds.

BEIJING/SHANGHAI (Reuters) - Dalian Wanda Group is selling a $1.24 billion stake in its listed film business to a pair of investors led by Alibaba Group Holding Ltd (>> Alibaba Group Holding), as the conglomerate looks to bring in strategic partners and raise new funds.

The property-to-entertainment firm will sell the combined 12.77 percent in Wanda Film Holding Co Ltd (>> Wanda Film Holding Co Ltd) to e-commerce giant Alibaba and state-backed Cultural Investment Holdings Ltd (>> Cultural Investment Holdings Co Ltd) for a total of 7.8 billion yuan ($1.24 billion).

The move, hot on the heels of a separate deal to bring in investors to its commercial property unit, highlights a major shift by Wanda towards a streamlined, "asset light" model, amid a broad crackdown in China on high levels of corporate debt.

"Generally speaking, Wanda needs more cash, and every business line needs cash," said Li Chengdong, a Beijing-based analyst, referring to a cash crunch that has hit Wanda and a number of other major Chinese conglomerates over the past year amid tightening access to credit.

In the latest deal, Alibaba will invest 4.68 billion yuan of the total. Wanda would remain as the controlling shareholder of the firm with a 48.09 percent stake, it said in a statement.

Wanda said the deal would give its film business access to Alibaba's strength in big data, while Cultural Investment, indirectly controlled by Beijing city's cultural assets arm, would help to open up tourism-related opportunities.

"The main purpose of the equity transfer of Wanda Film Holding is to bring in shareholders with strategic value," Wanda said.

Alibaba, which has its own film division as well as businesses from sports and ticketing to online payments, said in a statement the deal reflected the "future development potential" of Wanda Film.

The stake sale will add to the around $16 billion in investment deals that Wanda has announced since last year. In late January, Wanda said its commercial property arm had reached a deal to get a $5.4 billion investment from a group led by tech giant Tencent Holdings (>> Tencent Holdings Ltd).

Wanda, along with other major conglomerates including HNA Group and Fosun International (>> Art Group Holdings Ltd), has faced increased scrutiny of its finances and debts over the past year as Beijing clamps down on what it terms "irrational" overseas deals.

Last month, Wang Jianlin, Wanda's chairman, said the company had greatly reduced its debt and would use its "limited cash" in developing Wanda Plazas, the group's core business. He also pledged to reduce Wanda's corporate debt through all available means to "absolute safe" levels within two or three years.

Wanda Film includes Wanda's film production, marketing and distribution assets, including over 500 cinemas, but does not include Wanda's U.S.-based studio Legendary Entertainment and several other film-related assets.

The film unit had operating revenues of 13.2 billion yuan last year, Wanda said in its statement.

($1 = 6.2868 Chinese yuan renminbi)

(Reporting by Pei Li and Adam Jourdan. Editing by Muralikumar Anantharaman and Jane Merriman)

By Pei Li and Adam Jourdan


© Reuters 2018
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Financials
Sales 2020 6 439 M 994 M 994 M
Net income 2020 -1 879 M -290 M -290 M
Net Debt 2020 2 846 M 439 M 439 M
P/E ratio 2020 -22,1x
Yield 2020 0,24%
Capitalization 42 585 M 6 572 M 6 572 M
EV / Sales 2020 7,06x
EV / Sales 2021 2,71x
Nbr of Employees 14 260
Free-Float 40,5%
Chart WANDA FILM HOLDING CO., LTD.
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Wanda Film Holding Co., Ltd. Technical Analysis Chart | 002739 | CNE100001WW1 | MarketScreener
Technical analysis trends WANDA FILM HOLDING CO., LTD.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 20,10 CNY
Last Close Price 19,09 CNY
Spread / Highest target 35,7%
Spread / Average Target 5,28%
Spread / Lowest Target -18,8%
EPS Revisions
Managers and Directors
NameTitle
Xiao Bin Liu Chief Executive Officer & Director
Mao Jun Zeng President & Director
Lincoln Zhang Chairman
Chen Zhang Chairman-Supervisory Board
Shuo Huang Chief Financial Officer & Vice President
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