Business

More Trouble For $10 Billion Wanda Deal In Haryana

न्यूज़ वर्ल्ड इंडिया | 0
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| July 19 , 2017 , 12:28 IST

The second-richest man in China, billionaire Wang Jianlin will likely face more difficulties in carrying out its proposed investment of $10 billion in Haryana real estate development, since China is planning to cut off some of the funding for Wang's Dalian Wanda Group Co for breaching restrictions on overseas investments.

The Wanda group had plans to invest $10 billion in Haryana for the construction of 5 industrial and theme parks apart from shopping malls. The deal had been temporarily stalled as the state government called for a share of 26 percent while the company was unwilling to give more than 9 percent.

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China's move restricting Wanda Group's overseas investments could deter Wang's ambitious plans to set up a global entertainment empire. According to reports, 6 investments including the purchasing of Nordic Cinema Group Holding AB, and Carmike Cinemas Inc were found to have violations. Banks have also been banned from providing Wanda with financial support linked to these projects.

The move targeting one of China's top businessmen is being seen as an attempt of the government to escalate its crackdown on capital outflows and reduce overseas acquisitions during a politically sensitive time in China.

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Apart from the bank-financing ban, Wanda will also be prohibited from selling acquired assets to any listed entity in China, infusing capital into those assets or using them in any restructuring with domestic units of Wanda co. Other conglomerates whose loans are coming under the scanner of China's banking regulator are  Fosun International Ltd., HNA Group Co., and Anbang Insurance Group Co.

As a result of the increased scrutiny on its overseas deals, Wanda group is scrapping its $1 billion offer to buy the Dick Clark Productions Inc, the Hollywood producer behind the Golden Globe Awards.

Over the past few years, Wanda has been among the most active acquirers of foreign assets in China, acquiring companies such as “Kong: Skull Island” producer Legendary Entertainment, AMC Entertainment and Sunseeker International Ltd.