Why taking money out of China is getting tougher? Dalian Wanda may have the answer

By: |
Published: February 21, 2017 1:33:48 PM

Billionaire Wang Jianlin’s Dalian Wanda Group Co is facing obstacles in its $1 billion bid to buy Golden Globe Awards producer Dick Clark Productions Inc, according to people familiar with the matter.

For Wanda, which announced the deal last year, buying the company would be its first entry into US television production. (Reuters)

Billionaire Wang Jianlin’s Dalian Wanda Group Co is facing obstacles in its $1 billion bid to buy Golden Globe Awards producer Dick Clark Productions Inc, according to people familiar with the matter. The Chinese conglomerate has had difficulties taking money out of China to pay for the deal, the people said, asking not to be identified because the information is private. It would be premature to say that the deal has collapsed, the people said.

Wanda’s difficulties illustrate how Chinese companies, which announced a record volume of overseas deals last year, are facing mounting regulatory scrutiny and hurdles obtaining offshore funding in their pursuit of assets abroad. In a similar example, Barrick Gold Corp.’s plan to sell its stake in an Australian mine to a Chinese bidder has stalled as the buyer faces delays securing financing for the $1.3 billion deal, people with knowledge of the matter have said.

Late last year, Chinese government bodies including the National Development and Reform Commission said they’re closely watching “irrational” outbound purchases, in the latest sign of China’s broader effort to limit capital outflows and protect the currency from depreciating further.

You may also like to watch:

For Wanda, which announced the deal last year, buying the company would be its first entry into US television production. The acquisition, which requires regulatory approval, would give Wanda control of Dick Clark’s music and movie awards programs, as well as TV shows such as “So You Think You Can Dance.”

TheWrap reported earlier that the deal had collapsed, citing people familiar with the matter.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.