There is not much time left for Wang Jianlin

Source: Big Cat True Detective Agency

There is still one month left for Wang Jianlin at most.

According to the original VAM agreement, if Zhuhai Wanda cannot be listed by the end of this year, Wanda will spend 30 billion yuan to repurchase shares, and must pay 12% interest, Wanda also borrowed three overseas debts totaling 1.3 billion US dollars, and their contract with the syndicate agreed to be listed before November 30 this year.

Now there are only a few days left before this date, and to add insult to injury, they originally found three listing coordinators, including Credit Suisse, which had a good cooperation with Wanda, but unfortunately Credit Suisse terminated its investment banking business after being acquired by UBS, and Credit Suisse had to withdraw.

Looking at it now, unless a miracle happens, Wanda may go public as scheduled, so they have been discussing with investors these days whether they can postpone the repayment of the 30 billion repurchase money, but it is said that they were ruthlessly rejected.

So where did the 30 billion come from? That's a long story.

Wanda's past ten years have been like a roller coaster, with twists and turns.

In 2014, Wang Jianlin was in high spirits, Wanda Commercial was listed in Hong Kong, which was the largest IPO of the year, Wang Jianlin became the richest man in Asia, but the stock price could not go up after the listing, Wang Jianlin felt that it was too underestimated, and as a result, privatization was launched in 2016.

Privatization needs money, Wanda Commercial signed a VAM agreement with 9 consortiums, saying that it would complete the A-share listing in 2018 two years after the delisting, otherwise it would repurchase the equity, and at that time, the principal and interest involved was about 30 billion.

But Wang Jianlin obviously underestimated the changes in the general environment, and as a result, in 2017, Wanda fell to the bottom, but fortunately, it engaged in a deal of the century, and Wanda survived and transformed into an asset-light asset, but it was obviously no fun to be listed on the A-share market, and the bet was definitely lost.

However, Wang Jianlin and Wanda did not pay this part of the money, but solved it in a strong circle of friends.

In 2018, Tencent, Suning, JD.com, and Sunac signed an investment agreement with Boss Wang, and acquired the equity in the hands of the delisted consortium for 34 billion yuan, and the money was also signed a VAM, requiring it to be listed before October 30, 2023.

With no hope for A-shares, Wang Jianlin decided to spin off Wanda, keep heavy assets in Dalian Wanda, transfer commercial management and property management to Zhuhai Wanda, and let Zhuhai Wanda go public in Hong Kong.

This plan is obviously easier than going to the A-share listing.

At the time of the spin-off in 2021, Wanda introduced new investments, including Ma Yun, Ma Huateng, Country Garden Yang Family, Chow Tai Fook Zheng Family, and Zhuhai State-owned Assets Supervision and Administration Commission, CITIC, China Merchants and other central enterprise funds, and this time the company also signed a VAM agreement, the amount is still 30 billion, and the valuation of Zhuhai Wanda at this time is 180 billion.

In the blink of an eye, in 2022, real estate is in a downturn, but Wanda's rental income is more than 50 billion, and Wang Jianlin has become a lucky winner, standing out among the disgraced real estate developers.

But the listing has not been smooth.

October 21, 2021, April 22, 2022, October 25, 2022, June 2023, 珠海万达交表四次,都失败了。

So where the hell is it stuck?

In the past, when domestic enterprises applied for overseas listing, there was a saying that "big and small roads". Xiaolutiao refers to the listing acceptance notice issued by the Securities Regulatory Commission, after obtaining it, you can go to the Hong Kong Stock Exchange to submit the form, and then obtain the formal approval documents of the Securities Regulatory Commission, that is, the Dalutiao, you can arrange hearings, roadshows, IPO and listing procedures.

In October 2021, Zhuhai Wanda got the "small road strip", and generally speaking, the "big road strip" can be obtained in another 3-6 months, but they have not been able to get it.

This year, the overseas listing has been changed to a filing system, and you can go through the procedure when you get the filing notice, and many companies have been listed smoothly, but Zhuhai Wanda has not been able to obtain the filing notice.

Why not give it?

In June this year, the China Securities Regulatory Commission (CSRC) asked Zhuhai Wanda to submit supplementary materials, raising many questions, such as:

1. There is no problem with good business, but the occupancy rate is 98.8%, this data is indeed a little different from the market environment, what is the calculation caliber, and is there any false report on the Internet?

2. Is there a guarantee for the controlling shareholder Dalian Wanda, how do the funds come and go, does it occupy funds, and why do you pay large dividends while financing?

3. At the beginning, the VAM agreement had profit requirements, is this profit guarantee reasonable? In 2021, the performance was 3.482 billion, which did not meet the standard, and in 2022, the profit will be 7.512 billion, not only the performance has doubled, but also the standard, why did it rise so fast?

The questions are for Zhuhai Wanda, but in fact, most of the questions need to be answered by Dalian Wanda, so Wang Jianlin is now under a lot of pressure.

Again, the main problem is money.

1. I don't have much money in my hand.

According to the third quarter report of Dalian Wanda Commercial Management, Dalian Wanda Commercial Management's revenue and profit increased slightly year-on-year, but the cash in hand is really not much, as of the third quarter, it was 12.773 billion, while in the same period last year, this figure was still 32.539 billion, 61% less.

2. It's not easy to make money.

In June this year, Wanda's 6 billion small public offering bonds, but soon suspended the registration process, the regulator not only paid attention to the 30 billion VAM, but also directly pointed out that the net cash flow generated by Dalian Wanda's financing activities in the past three years was negative, the highest was -32 billion, and the minimum was more than -10 billion.

In other words, if Zhuhai Wanda Commercial Management cannot be listed, the cash in the hands of Dalian Wanda Commercial Management cannot cover all the repurchase money.

Therefore, in the past two years, Wang Jianlin has not engaged in the big deal of the century, but the shares of his company have been sold a lot, Wanda Plaza has sold 5, and the shares of Wanda Film have also been sold a lot, which are basically used to pay off debts.

Now Wanda is still encouraging to maintain credit in the open market, but there is really not much time left for Wang Jianlin.

In front of Boss Wang, there may still be two old ways:

1. Ask for help from your circle of friends again, and have friends to take over these shares like the previous two times, of course, this may also generate new bets;

2. It is not easy to continue to sell assets in large quantities like the original "Deal of the Century".