China’s acquisitive corporate giants can’t seem to catch a break these days. In today’s news, debt-addled Sunac China is looking to sell up to $1 billion in US dollar bonds after snapping up nearly $15 billion in assets over six months. This comes a week after the Tianjin-based developer said it would raise $516 million in a share sale. Also in the headlines, an embattled Wanda has hired some global PR expertise to burnish its corporate image, and cash-strapped LeEco’s Jia Yueting is having his assets frozen – again. Read on for all these stories and more.
Sunac Plans $1B Bond Sale after Buying Binge
Sunac China, one of the country’s biggest asset buyers in the past year, is planning to sell up to US$1 billion in dollar-denominated bonds to raise funds to refinance its debt, after a six-month, 100 billion yuan (US$14.9 billion) shopping spree for theme parks, a video streaming company and a carmaker.
The developer has been allocated the note sale quota from the National Development & Reform Commission (NDRC), with the price offered by Sunac at between 7.5 per cent and 8.5 per cent, investors familiar with the issuance told the South China Morning Post. Read more>>
Country Garden Danga Bay to Deliver First 4,000 Units this Month
China-based Country Garden Group will be giving vacant possession of its first 4,000 units in Country Garden Danga Bay starting from next month.
“We have recorded about RM6.7bil in sales turnover since the launch of the project in 2013,’’ Country Garden Malaysia regional sales and marketing general manager Alex Zhao said in a press conference here yesterday. The multi-billion ringgit waterfront development project is located in Iskandar Malaysia, in Johor. Read more>>
Wanda Hires Top PR Talent Amid Struggles
Dalian Wanda Group, the Chinese MNC that is both the world’s biggest private property developer and cinema chain operator, has signalled a shift in its communications strategy, bringing in H+K Strategies as its first global PR agency of record.
H+K takes on the worldwide remit following a competitive review earlier this year. The firm will manage Wanda’s global PR and communications strategy, including overall brand building as well as specific in-market projects. Read more>>
Beijing Court Orders 2nd Asset Freeze of LeEco’s Jia
Cash-strapped Chinese entertainment and tech group LeEco is facing a new round of court challenges. A Beijing court has approved China Construction Bank’s application to freeze $37.2 million (RMB250 million) of assets belonging to founder Jia Yueting.
According to two judgment papers, a Beijing civil court ruled July 25 that assets owned by Jia, Leshi Internet Information & Technology Co. (the listed arm of LeEco), Leshi Holdings, and Jia Yuemin (Jia’s elder brother and Leshi Holdings director) can be frozen for up to three years. Read more>>
Senate’s Top Democrat Urges Trump to Block China M&A Deals
The Senate’s top Democrat, Chuck Schumer, is calling on President Donald Trump to suspend the approval of all Chinese deals facing national security reviews in the U.S. until China acts more aggressively to press North Korea to curtail its nuclear and missile programs.
“If China continues to passively address North Korea, I urge you to use your authority over the Committee on Foreign Investment in the United States (CFIUS) to suspend the approval of all mergers and acquisitions in the U.S. by Chinese entities,” Mr. Schumer wrote to Mr. Trump in a letter dated Tuesday that was reviewed by The Wall Street Journal. Read more>>
Office Buildings Are Too Boring for HK Co-working Operators
Providers of co-working spaces in Hong Kong are branching out from traditional office buildings into street-level shops and hotels as their popularity grows among companies seeking cheaper, more flexible leasing terms in one of the world’s most expensive cities
The rapid shift of shared working spaces into unconventional premises comes as operators aim to broaden their base of clients who are looking for creative working environments. Garage Society, a co-working space operator for entrepreneurs and professionals, added its latest property by integrating four shops in Sai Ying Pun into a 7,000 square foot hub. Read more>>
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