Dalian Wanda Group Taps Three Banks To Work On Proposed IPO
Chinese conglomerate Dalian Wanda Group "tapped three banks" -- Citigroup Inc., CLSA and UBS Group AG -- "to work on a proposed initial public offering for its sports businesses," four sources with knowledge of the matter said, according to Baker, Lau & Zhu of REUTERS. An IPO would "follow a string of asset sales as Wanda works to meet debt repayment deadlines." It was one of several domestic conglomerates to be targeted by a government crackdown last year for "aggressive overseas acquisitions," with sources saying that banks were told to "stop providing funding for some deals." The "sprawling" property-to-entertainment group has "yet to decide which exchange to list on" and is considering both Hong Kong and N.Y., two of the sources said. It hopes to raise up to $1B via the share sale, one of them added. All plans are "still at an early stage" and there is "no guarantee that Wanda will pursue an IPO," said the sources, who declined to be named as the information was confidential. Wanda, Citigroup and CLSA declined to comment. UBS did not respond to requests for comment (REUTERS, 1/22).