Billionaire Wang’s Wanda Group Reorganizes Travel-Agency AssetsBloomberg News
Billionaire Wang Jianlin’s Dalian Wanda Group Co. plans to reorganize its travel-agency assets.
Wanda Beijing Tourism Investment Co. will be sold to an affiliated company called LY.com, the group said in a statement on Sunday. Closely held LY.com, which plans to finance the purchase via cash and stock, said in a separate statement that its valuation will increase to 20 billion yuan ($3 billion) after the deal.
The combination would pave the way for the creation of a travel agent with projected total revenue of more than 36 billion yuan this year, according to the companies’ forecasts. LY.com, known as Tongcheng in China, forecasts it will post 50 billion yuan in revenue and 2 billion yuan in profit by 2018.
Wanda is the biggest shareholder in LY and other investors include Tencent Holdings Ltd., Ctrip.com International Ltd. and state-owned Citic Capital Holdings Ltd. Still, LY’s management has the largest voting rights in the company, according to travel company’s website. Neither Wanda nor LY would specify the ownership levels.
— With assistance by Jeanne Yang