Dalian Wanda and PAG Announce $5.9 Billion Investment Reinforcement

PAG and Dalian Wanda Commercial Management Group Collaborate on New Investment Agreement

December 12, 2023 - Beijing – Dalian Wanda Commercial Management Group Co. Ltd., a leading company in the commercial management sector with its parent company being Zhuh Wanda Commercial Management Group Co., Ltd., has announced a new investment agreement alongside PAG and other investors referred to as existing investors. The partnership involves an approximately USD5.9 billion RMB38 billion investment re-investment into Zhuh Wanda, with proceeds derived from Dalian Wanda in line with their earlier investment pact.

PAG held a stake of about USD2.8 billion or approximately RMB18 billion in the 2021 investment round when existing investors made a total investment of around USD5.9 billion into Zhuh Wanda. This arrangement was scheduled for redemption at its due date as per their previous agreement.

Under this new framework, Dalian Wanda will retn its position as the largest single shareholder with ownership stakes exceeding 40 of Zhuh Wanda's total shares outstanding. PAG and other investors collectively will own a majority shareholding of approximately 60. The significant stakeholders of Zhuh Wanda have committed to enhancing governance standards, ensuring management team stability, and supporting the company’s long-term growth.

A representative from PAG emphasized their confidence in Zhuh Wanda's potential for expansion and its leadership capabilities. Wanda spokespersons echoed similar sentiments, expressing gratitude towards investors' trust and support.

Zhuh Wanda, recognized as the world's largest mall operator by square footage, currently manages a staggering 494 shopping centers across 227 cities in China-a significant increase from the initial management of 417 malls two years prior. Over this period, Zhuh Wanda has demonstrated exceptional performance agnst its financial targets.

The company recorded after-tax revenues of RMB24 billion in fiscal year 2021, growing to RMB27 billion in 2022 and estimated at RMB29 billion for the current year fiscal year 2023. This represents an annual growth rate of approximately 12. The after-tax profit also saw robust growth, increasing from RMB5.3 billion in 2021 to RMB7.5 billion in 2022 and estimated at RMB9.5 billion for the current year fiscal year 2023, with a 34 annual growth rate noted over this period.

In the three years following the investment by existing investors, Zhuh Wanda has consistently delivered divids to shareholders amounting to approximately RMB10 billion in taxes pd and divids distributed totaling RMB4.6 billion fiscal year 2021, RMB6.7 billion fiscal year 2022, and estimated at RMB8.5 billion for fiscal year 2023.

About PAG

PAG is a prominent private equity investment firm with a strategic focus on Asia-Pacific regions. The company specializes in three core strategies: Private Equity, Real Assets, and Credit Markets. On behalf of nearly 300 global institutional investors, it manages assets under the care of more than 300 investment professionals across 15 key offices worldwide. As of this report, PAG boasts approximately USD55 billion in assets under management.

For further information, please visit: www.pag.comhttp:www.pag.com

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