Chinese property-and-entertainment conglomerate Dalian Wanda Group Co. is telling private investors joining its $4 billion property-arm buyout deal that they could triple their money when the unit lists domestically, the latest example of lofty expectations for Chinese companies rushing home. According to The Wall Street Journal, Wanda expects domestic investors will pay 20 times earnings for the commercial-property unit—called Dalian Wanda Commercial Properties Co.—versus the current Hong Kong market valuation of 5.8 times earnings over the last 12 months for the stock. That means the company’s shares in total would be worth 500 billion yuan (US$77 billion) compared with 207.6 billion Hong Kong dollars (US$26.8 billion) before the buyout deal.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved