Sources: Wanda to proceed with buyout

Dalian Wanda Group Co is proceeding with plans to buy out its Hong Kong-listed property unit, after considering whether to scrap the deal in the wake of Chinese regulatory concerns, according to industry sources familiar with the matter.

Dalian Wanda Commercial Properties Co is in the process of clearing the plan with Hong Kong authorities and is likely to announce details of the buyout as soon as next week, one of the sources said.

Wanda plans to bid for all its Hong Kong-listed shares at about 10 percent above the initial public offering price of HK$48 a share and then pursue a listing within two years in the Chinese mainland, where it could fetch a higher valuation, according to the source.