The move comes as China’s central government is calling on some of the country’s most aggressive firms to dial back their debt-driven expansion, often overseas.
Facing pressure to reduce its debt, Chinese conglomerate Dalian Wanda Group plans to sell $9.3 billion in tourism projects and hotels to real estate rival Sunac China.
The move comes as China’s central government is calling on some of the country’s most aggressive firms to dial back their debt-driven expansion, often overseas. Over-leverage in China’s economy has become a growing concern. In May, Moody’s downgraded China’s sovereign credit rating for the first time since 1989.
Wanda has been among the most active private Chinese companies investing abroad. In 2012, it purchased AMC Theatres for $2.6 billion. Four years later, it snapped up Hollywood studio Legendary Entertainment for $3.5 billion. The company has since hit road bumps in the U. S. as its movie ambitions have been diminished by flops and scuttled deals .
Primarily a real estate company, Wanda also took aim at the tourism industry by pledging to unseat Disney as a top brand .
In a joint statement issued Saturday, the companies said Sunac would buy majority control of 13 tourism projects, which include theme parks, and 76 hotels. The tourism sites will retain Wanda’s name.
Sunac China is a major residential developer based in the northern city of Tianjin.
david.pierson@latimes.com
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