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Wang Jianlin, a name that once symbolized the pinnacle of China's business empire. However, in recent years, with the outbreak of the debt crisis and the tightening of the capital chain, Wanda Group seems to have entered an unprecedented trough.
Just when everyone thought that Wang Jianlin would completely lose control of Wanda Commercial Management, an unexpected "blood replenishment" drama was staged.
Wanda's predicament and desire to survive
Wang Jianlin has experienced a rollercoaster ride in business. Having said that, from the crazy expansion at the beginning to the later deleveraging, and then to the final having to give up control, the sadness and helplessness in the process are probably only known to him.
In 2021, when Wang Jianlin presented Zhuhai Wanda Commercial Management to many investors, he may not have foreseen that the VAM agreement would become a major pressure in the future.
At that time, PAG Investment joined with a staggering 18 billion yuan, which injected strong impetus into Wang Jianlin.
But who knows, the good times will not last long, and the pressure of the VAM agreement is like a mountain pressing on Wang Jianlin's heart.
Looking at 2022, Wanda Commercial Management's listing failed, and the pressure of the VAM agreement became a real threat. At that time, Wang Jianlin was really anxious. The market is so difficult, and the rumors of Wang Sicong's succession are gone, how can this be good?
Fast forward to 2023, and Wanda's financial problems are getting more and more serious. In order to relieve the pressure, Wang Jianlin had to sell the equity of Wanda Films.
But after the sale of the shares, the situation did not improve much, and Wanda Films had to give up control. At this time, the problem of Wanda Commercial Management is still hanging, what should I do?
Finally by the end of 2023, Wanda Commercial Management can only be put on the negotiating table. At this time, Wang Jianlin may have prepared for the worst.
The impact of investors' divestments and dilution of equity has set off shocking waves, plunging the once-glorious Wanda into a doomsday crisis.
However, just as people are worried about Wanda's future, a new investment agreement has quietly emerged, breathing new life into Wanda.
This exciting news comes from Wanda's official website, and the new capital cooperation plan jointly created by Wanda Commercial Management and PAG's investment team has suddenly arrived like a spring thunder.
Speaking of this seemingly impossible agreement, PAG Investment's generosity would not have been possible without it. This company, which has a deep relationship with Wanda, first entered Wanda's investment project in 2021, and has a luxurious lineup of investors, including well-known companies such as Tencent and the Zheng Yutong family.
They have provided up to 38 billion yuan in financial support, of which PAG has invested up to 18 billion yuan.
However, the huge investment was not without cost, with Wanda under the condition that it would have to go public in 2023 or face pressure to buy back its shares and pay high interest.
Faced with such harsh terms, Wanda was caught in a dilemma.
However, the dramatic turn came a year later.
The new agreement stipulates that although the agreement signed by the two parties has expired in 2021, PAG has decided to lend a helping hand to Wanda Commercial Management again.
This news is like a relief in the snow, giving Wanda hope to get out of the predicament.
With the approval of the plan, Wanda's stake has become smaller, and its actual control has been firmly controlled by outside agencies, while Wanda's founder, Wang Jianlin, has reduced his stake to 40 percent.
Although this situation may be worrying to the outside world, from a deeper perspective, this may be the most appropriate solution for Wanda and even Wang Jianlin.
The dust of this capital wrestling has settled, giving Wang Jianlin a chance to breathe. He understands that giving up at this moment is only to put Wanda on a more secure path. From this moment on, Wanda embarked on a new journey.
The turnaround of 60 billion and the big guy behind it
In this "defense battle" of the Wanda system, Wang Jianlin has experienced unprecedented challenges.
Presumably, during this whole process, his heart was mixed. From the debt at the beginning to the end of having to let go of the control of Wanda Commercial Management, the road has been full of ups and downs.
In June last year, one of Wanda's creditors, Shan Weijian, began to collect debts.
Boss Shan is not an ordinary person, at the time of the Asian financial crisis, he relied on 8 billion to buy the First Bank of Korea and became famous overnight. This time, he set his sights on Wanda and was ready to do a big job.
Wang Jianlin was under a lot of pressure at that time, with 12.8 billion cash in his account, and by the end of December, he had to repay 30 billion to Shan Weijian. Where does this money come from?
Lao Wang can really toss, Wanda Movies and Wanda Plaza, these housekeeping treasures have to be taken out for cash, but after calculation, there is still not enough money.
At this time, old friends such as PAG Investment and CITIC Capital stood up again, saying that they would invest another 60 billion in Wanda.
No, it also brought in two new faces, the Abu Dhabi Investment Authority and the Mubadala Investment Company, two Middle Eastern bigwigs who are also deep-pocketed.
At this moment, Wanda's financial crisis has been temporarily alleviated.
But the investment was not given for nothing, and Wanda Commercial Management's shareholding was reduced from 70.15% to 40%. In order to save Wanda, Wang Jianlin can be said to be in pain.
The Wanda boss who swept the business world in the past will have to bow his head to these investors now.
Not to mention, Wang Jianlin's wealth has to shrink, from his peak worth to ninety percent, and now there is only 30 billion left.
Don't look at the fact that things seem to be solved now, but there are still many things behind this that have not been figured out. For example, the specific amount of these investments, and how many shares they occupy, and whether the other original investors will leave or stay, is still a question mark.
Suntecmon's management and corporate governance structure are also a mystery.
The most interesting thing is that Wang Jianlin did not show up for this signing. Maybe he himself feels that this time, although Wanda is still in his hands, it no longer completely belongs to him.
Although he made a huge concession, it seems that he has also found a new way to live for Wanda, just look at it this way, Wanda's big ship, although it has encountered a storm, it seems that it can still sail away.
Wang Jianlin's role has changed
Although Wanda Commercial Management's shareholding ratio has dropped significantly, this capital injection has brought new development opportunities to Wanda.
Wanda's asset-light strategy is expected to accelerate, and the new investors have pledged to maintain the stability of the team, which is undoubtedly a big positive for Wanda.
However, Wang Jianlin's personal status has changed significantly. He is no longer Wanda's absolute controller, but more like a senior worker.
But as the capital markets have shown, every crisis is an opportunity to reshuffle.
The story of Wang Jianlin and Wanda is far from over, and a new chapter has just begun.
In the face of many difficulties, Wang Jianlin and Wanda Group did not choose to give up, but looked for a turnaround in the crisis, and finally ushered in an eye-catching reversal.
The injection of 60 billion yuan not only solved Wanda's urgent needs, but also opened a door for its future development.
Although Wang Jianlin lost absolute control of Wanda Commercial Management, this "blood replenishment" operation undoubtedly gave Wanda a chance to get back on its feet.
In the new landscape, although Wang Jianlin's identity has changed, his experience and insight into the market are still indispensable and valuable resources for Wanda.
Facing the future, Wanda needs to use the resources of new investors to find the most potential development trajectory, and the joining of the giant has both capital investment and firm optimism about its future.
In particular, the presence of the Abu Dhabi Investment Authority and Mubadala Investment Company has provided Wanda with abundant resources to explore the global market and deepen cross-border cooperation.
This incident undoubtedly has a far-reaching impact on the overall business community in the mainland and has become a typical case with far-reaching impact.
It tells us that even in the face of great difficulties, as long as we find the right solution, it is possible to usher in a turnaround. Wang Jianlin and Wanda's experience is a story of perseverance and wisdom.
For Wanda, however, this is only the beginning of a new journey. Under this new investment structure, the process of balancing the interests of all parties, maintaining stability and accelerating development is undoubtedly a new issue for Wanda.
Similarly, as a business leader, Wang Jianlin's ability to fully demonstrate his leadership effectiveness in the new context is also eye-catching.
In the final analysis, the wonderful story of Wang Jianlin and his Wanda is still in the prologue stage, and more glorious chapters are ready to be released.
For people from all walks of life, this is not only a legend of successful examples of business counterattacks, but also a picture that inspires people to persevere, contain wisdom and have the courage to innovate.
Let us look forward to witnessing what kind of miracles and reveries this former business giant will create on a new long journey.
References:
National Business Daily "Middle East financiers rush to help Wanda - every reporter directly hits the 60 billion investment signing on the spot"
Times Weekly "Revealing the Secret of Wanda's "White Knight" Shan Weijian: "Asian Little Blackstone", serving as an independent director of Alibaba, with an average annual salary of 3.8 million yuan per person in the company under his name"