Wanda raises offer for HK unit

Chinese billionaire Wang Jianlin's Dalian Wanda Group Co is offering HK$34.5 billion ($4.4 billion) to buy out its Hong Kong-listed property unit, as it seeks a higher valuation for the business on mainland stock exchanges.

Wanda will pay HK$52.80 for each Hong Kong-traded share of Dalian Wanda Commercial Properties Co, the company said in a statement on Monday, 10 percent higher than an earlier offer of at least HK$48 and 3 percent higher than its last trading price of HK$51.25 before trading was halted on April 22. The shares, which have traded in Hong Kong for less than two years, fell to HK$49.25, down 1.5 percent after resuming trading on Monday.

Wang, who controls Wanda Commercial's Beijing-based parent, said that the unit was "substantially undervalued" and he wanted to proceed with the privatization. The billionaire has been seeking investors to help purchase as much as 14.41 percent of the shopping-mall operator and re-list it in the Chinese mainland, according to a document sent to prospective backers.