L.R. Capital Group (“L.R. Capital”), a global investment company and multi-family office, announced the investment of HK$2.06 bn (US$266 mm) in subscribing PACM Investment Funds SPCII and PACM Investment Funds SPC IV managed by Ping An China Securities (Hong Kong) Co., Ltd. (collectively known as the “PACM Fund”). The PACM Fund further participated in the privatization of the H Shares listing of Dalian Wanda Commercial Properties Co., Ltd. (3699.HK, “Wanda Commercial Properties”) through the joint offerer, WD Knight VIII.
Wanda Commercial Properties, the world’s largest real estate enterprise as well as the only commercial property investment and operating platform under the Dalian Wanda Group, was listed on the Main Board of the Hong Kong Stock Exchange on 23 December 2014, which represented the largest IPO in the Hong Kong capital markets in 2014. In March 2016, Dalian Wanda Commercial Properties announced its privatization plan. In May, Wanda Commercial Properties’ controlling shareholder, Dalian Wanda Group, on behalf of the joint offerers, made a voluntary general offer in connection with the kickoff of H Shares privatization. In August, Wanda Commercial Properties’ shareholders approved the privatization proposal in a shareholder meeting. On 20 September, Wanda Commercial Properties shares were officially delisted from the Hong Kong Stock Exchange. The privatization offer was valued at US$4.4 bn as the largest offer in Hong Kong history. In the meanwhile, Wanda Commercial Properties also announced the IPO preparation work for the listing of its A Shares.
The joint offerers in the privatization of Wanda Commercial Properties are the following nine investment entities: WD Knight I, WD Knight II, WD Knight III, WD Knight IV, WD Knight V, WD Knight VIII, WD Knight IX, WD Knight X and Red Fortune Global Limited. Among them, WD Knight VIII is a Limited Partner registered in the Cayman Islands. The Limited Partner of WD Knight VIII is the PACM Fund, which is managed by Ping An Securities (Hong Kong). L.R Capital subscribed HK$ 2.06 bn (equivalent to US$ 266 mm) worth of PACM Fund shares to participate the privatization offer of Wanda Commercial Properties.
Mr. Raymond Yung, Chief Executive Officer of L.R. Capital Group, commented that L.R. Capital is very optimistic about Wanda’s unique competitive advantages, and he also looks forward to the prospect of the fourth transformation of Wanda’s business model. L.R. Capital hopes to further participate in the transformation and the upgrading of Chinese enterprises by offering the vital linkage of capital and resources. In addition, L.R. Capital continues to support the prosperity of China’s economic reform and development, and it is committed to helping more Chinese enterprises such as Wanda to transform into world first-class multinational companies.