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Mubadala + ADIA join consortium investing USD 8.3 bn Chinese mall unit: Abu Dhabi sovereign wealth fund Mubadala and the Abu Dhabi Investment Authority joined a consortium of investors, led by Hong Kong-based private equity giant PAG, in a USD 8.3 bn investment for a majority stake of 60% in the mall unit of Chinese property giant Dalian Wanda, Reuters reports. Ares Management also bought shares.
We knew this was coming, but Mubadala’s contribution is a surprise: ADIA has been in talks to buy a minority stake in the mall operator — which operates nearly 500 malls for Dalian Wanda Group — for a while, as shareholders in the company looked to offload their stakes amid a downturn in its valuation. This is the first we hear of Mubadala’s interest in a stake, but it comes amid an acquisition spree that saw it acquire stakes in two other companies last month alone, as well as make investments in venture and private credit funds and startups.
Background: The mall operator’s value has fallen to less than half of what it was three years ago. The company had initially promised investors a repayment of some CNY 30 bn plus interest if it does not IPO by the end of 2023, and has since reportedly been seeking a CNY 30 bn loan from regional banks to pay off investors wishing to sell their shares and pull out.
ADIA’s stake purchase was said to reportedly hinge on the company securing the loan, Bloomberg said previously, though it’s not yet clear whether it has received one.
