BILLIONAIRE Wang Jianlin is offering to pay investors up to 12 percent annual interest if his Dalian Wanda Group fails to re-list its Hong Kong quoted property arm in Shanghai within two years of taking it private, documents show.

    Dalian Wanda has given interested investors until today to pay a deposit as it seeks to raise fund to privatize Dalian Wanda Commercial Properties, China’s largest commercial developer.

    Dalian Wanda, owned by China’s richest man Wang, is taking its Hong Kong unit private just 15 months after its stock market debut, unhappy with its share performance and preferring to place its bets on an upcoming Shanghai listing.

    A source with knowledge on the fundraising exercise, which is being done through special purpose vehicles, said Dalian Wanda’s offer has already been oversubscribed. Another source said most of the interest was from offshore Chinese funds.

    Investors willing to participate must pay a 20 percent deposit by today.

    “If the company fails to list in an onshore main board within two years of de-listing, or by Aug. 31, 2018 [whichever later], Dalian Wanda Group will buy back all shares [of the special purpose vehicle] from offshore investors with 12 percent interest and onshore investors with 10 percent interest,” the documents said.

    In the documents, Dalian Wanda estimated the company would be valued at 9.6 times earnings in 2016 if listed on domestic A share market, compared with 8.6 times on the H share market of Hong Kong-listed mainland firms.

    (SD-Agencies)