Chinese billionaire Wang Jianlin’s restructured company Xindameng attracted a new investment of about 60 billion yuan ($8.3 billion) on Saturday, marking the largest single investment in the Chinese private equity market in five years.
Investors, which include private equity firm PAG, China’s CITIC Capital, a fund under US private credit firm Ares Management, Platinum Peony, a subsidiary of the Abu Dhabi Investment Authority and Mubadala Investment Co, will jointly hold 60 percent of stakes of the restructured company.
Dalian Wanda Commercial Management Group, the tycoon’s flagship company, will hold the remaining 40 percent.
The restructured company, or Xindameng, was set up after PAG and Dalian Wanda signed an agreement in December. It is also the parent company of Zhuhai Wanda Commercial Management Group Co that operates nearly 500 large shopping malls.
Under the December deal, the combined stake of PAG and other investors in Zhuhai Wanda will increase to 60 percent while Wang will hold the remaining 40 percent. Previously, he controlled more than a 78 percent stake.
Dalian Wanda said in a statement that the new investment on Saturday is the implementation of the December deal, and will be used to further optimize the company’s independent corporate governance and long-term development.
“The investment is also broader part of Dalian’s recent efforts to expand foreign capital investment and will also receive full support from the Dalian municipal government in the future,” it added.