UAE’s ADIA mulls acquiring stake in China’s Wanda

Abu Dhabi Investment Authority (ADIA) is planning to acquire a minority stake in China’s Zhuhai Wanda Commercial Management group, possibly from existing shareholders, Bloomberg reported on Tuesday, citing people familiar with the matter.

The sources said that the possibility of ADIA acquiring a stake was dependent on Zhuhai Wanda’s ability to secure 30-billion-yuan financing from banks. However, it should be noted that there is no assurance the ADIA will ultimately proceed a deal.

Chinese regulators are providing additional financial support to developers by expanding access to commercial loans, as many are facing challenges in repaying debt and finishing projects. This includes major companies such as China Evergrande Group and Dalian Wanda Group Co.

ADIA’s consideration of taking a stake comes after billionaire Wang Jianlin gave up control of Zhuhai Wanda in December last year, to avoid immediate repurchase payments to pre-IPO investors.