Dalian Wanda to finance its $9.3bn sale to Sunac

Wanda will lend Rmb29.6bn ($4.4bn) to Sunac to help the developer finance its purchase of the former’s hotels and theme parks, according to a stock exchange filing. The deal will paid in four tranches, the filing reveals. The last of these, equivalent to almost half the total price, will be funded by a three-year bank loan, backed by Wanda, to Sunac at the prevailing bank rate. Sunac has already paid Rmb2.5bn on signing the framework agreement with a further Rmb12.6bn due by the end of this month following due diligence. The company had Rmb53.6bn in cash on its balance sheet at the end of December. A further 30 per cent is due on signing a definitive agreement and once Sunac gets shareholder approval. The remaining amount, funded by the Wanda-backed loan, is due in the following week.

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