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Bloomberg
Billionaire Wang Jianlin’s $4.4 billion proposal to privatize Dalian Wanda Commercial Properties Co. drew support from Glass Lewis, which advised investors to vote for the plan.
The buyout offer’s rationale is “fairly standard,†and “straightforward,†according to a Glass Lewis report seen by Bloomberg. The proxy advisory firm is “inclined to agree” that the buyout of listed shares is in the interest of those shareholders. Under the plan, Wanda would pay HK$52.80 for each Hong Kong-traded share of Wang’s property unit, 10 percent more than the IPO price of HK$48. The real estate company listed in Hong Kong two years ago. The proxy adviser recommendation comes after investor China Life Insurance Co. endorsed the plan in a letter of intent to vote in its favor. Wanda Commercial is due to hold an Aug. 15 shareholder meeting, where investors will vote on the proposed sale, which would be the biggest taking-private deal ever on Hong Kong’s stock exchange.
Dalian Wanda Commercial shares climbed as much as 1.6 percent in Hong Kong trading after the Glass Lewis endorsement was reported on Wednesday. The proxy advisory firm provides recommendations to more than 1,200 clients, including pension funds and investors who collectively manage more than $25 trillion in assets. The proposal will die if 10pc or more of votes are cast against it or if fewer than 75pc support it. If plan is turned down, Wang won’t be able to try again for 12 months, under rules governing such sales.