UBS Backed Out of Wanda Deal

Wang Jianlin, Chairman Wanda Group

Wang Jianlin, Chairman Wanda Group

Concerns over credit risk drove UBS to pull out as financial adviser weeks ago to the $4.4 billion deal that took Dalian Wanda Commercial Properties private, allowing a Chinese bank to step in.

The Financial Times (paywall) reported a senior Wanda official as saying that UBS «had become uncomfortable with that deal’s credit risk profile» and backed out of the transaction it had originally proposed ahead of the offer in May. 

Wanda had raised about HK$28.8 billion during its initial public offering in Hong Kong in December 2014.

Other Banks Also Declined

The withdrawal of the Swiss banking giant saw Wang Jianlin’s property conglomerate engage China International Capital Corp, (CICC) which took over Hong Kong’s biggest privatisation deal. 

Wanda also approached at least one other foreign bank about working on the deal but the offer was spurned, leaving China’s CICC to run the process single-handedly. Hong Kong rules require banks to be satisfied with the sources and availability of funds when offers are made.

Withdrawn From Stock Exchange

Shareholders had approved Wang’s share buy-back offer on August 15, which has paved the way for the relocation of the company’s listing from Hong Kong to mainland China.

Wanda’s shares were withdrawn from the Hong Kong stock exchange last month.

 

WEB'S BEST

Top stories from across the globe

  • Singapore Stresses Under a Wealth of Worries
  • A Short History of Investing in Gold – and What to Expect for 2017
  • Asia Pacific's Top Six Credit Risks For 2017
  • The 5 Most Shocking News in 2016
  • Hazel Moore: Banks Are Completely Wasting Valuable Customer Data
  • Morgan Stanley CEO Makes First-Ever Stock Sales After Bank Rally
More

PHOTO GALLERIES

finews.asia Networking Event

finews.asia Networking Event

Show pictures

stars China Symposium 2016

stars China Symposium 2016

Show pictures

Compare my salary

Compare my salary

Feeling Underpaid? Benchmark your salary by job title, company and location. Find out where you stand in minutes.

compare my salary

Newsletter

Newsletter-SymbolFree Subscription

Subscribe to our free newsletter and receive daily email alerts from the finews editorial team with a list of the top featured articles.

Share with us

Do you have any market intelligence to share with finews.asia – email us on info@finews.asia – All communication is completely confidential and strictly anonymous.