China’s Dalian Wanda Commercial Properties said it will seek shareholder approval for its plan to delist from the Hong Kong bourse on Aug 15 a proposal still dogged by much uncertainty over whether it will gain sufficient votes to pass.
Parent company Dalian Wanda Group, owned by China’s richest man Wang Jianlin, is offering $4.4 billion in cash to buy out the Hong Kong property unit, aiming to take it private before relisting it in Shanghai where it hopes to gain better valuations.
Shares of Wanda Commercial rose 1.8 percent to HK$46.95 in morning trade, but were still 11 percent lower than the buyout offer of HK$52.8, reflecting investor concern that the deal may not go through. The Hang Seng Index gained 1.6 percent.
To gain approval, the proposal will require at least 75 percent of shareholders votes in favour and no more than 10 percent of shareholders voting against it.
Analysts have questioned whether investors like BlackRock Inc, which is estimated to have accumulated almost 7 percent of the stock at an average price of HK$52.44, would be willing to vote in favour of the plan.
But some investors have said they are worried that if the deal gets blocked, the shares would only succumb to selling pressure.
Timing Investment, a cornerstone investor holding around 2.5 percent shares, had previously said it would only approve the buyout if the offer price was at least 15 percent above the firm’s IPO price, but has since changed its mind.
“It’s not as good as expected, but we need to approve. If the buyout gets blocked, Wanda won’t be able to propose taking it private again for a year, and the share price will once again be on a downtrend,” Timing chairman Jiang Ming said after Wanda’s offer was set earlier this month.
The shareholder meeting will be held in Beijing where Wanda is based.