Wanda rejects PTOs acquisition of triathlon business: proposal not clear enough

category:Finance
 Wanda rejects PTOs acquisition of triathlon business: proposal not clear enough


PTO is a non-profit entity representing the professional triathlon athletes group. It first proposed the acquisition plan in September 2019. At that time, PTO believed that the excessive leverage rate affected Wanda sportss ability to invest in Ironman business. But Wanda sports and its world Triathlon have rejected the offer.

In this letter, PTO mentioned that the company has ended financing with its partner of crankstart investments. The acquisition of three businesses of Ironman is considered to be a full cash transaction, or the transaction can enable existing shareholders of Wanda sports to participate in PTO, which has unique advantages and is most conducive to the realization of WTC business growth. We firmly believe that WTC business can be stable and developed only with the help of PTO and its professional athletes, and without our cooperation, WTC business will deteriorate. We are willing to work with any other financially stable team interested in acquiring the WTC business, reducing the debt burden and creating value that only PTO and its professional athletes can provide.

On July 26, 2019 local time, Wanda sports was listed on NASDAQ. The offering price is set at $8 per ads (American Depository stock), and it is planned to raise $190.4 million through this listing.

Wanda sports was incorporated in Hong Kong in November 2018. Its main shareholder is Beijing Wanda Culture Industry Group Co., Ltd., which is a wholly-owned indirect subsidiary of Dalian Wanda Group. Wanda sports listed asset package includes Yingfang sports media and world iron man company.

In February 2015, Dalian Wanda Group announced the acquisition of Swiss Yingfang sports media group with EUR 1.05 billion. In August of the same year, Wanda invested another 650 million US dollars to acquire the entire equity of American world iron man company. These two assets are the most core sports assets of Wanda sports.

The revenue structure of Wanda sports is divided into three core parts, including mass sports business, spectator sports business and digital media business. These three businesses are respectively corresponding to the three major companies of Wanda Sports: infrant, WTC and Wanda Sports China.

For Wanda sports, the WTC proposed to be acquired by PTO is the core business of Wanda sportss current revenue share.

Wanda sports third quarter 2019 financial report shows that the companys total revenue in the third quarter was 245 million euros, up 8% year on year. Among them, WTC business increased by 14% year-on-year, accounting for 44% of total revenue, watch sports business increased by 80% year-on-year, accounting for 26% of total revenue, digital media property decreased by 62% year-on-year, accounting for 30% of total revenue. In addition, the company had a net loss of 31.2 million euros in the third quarter and a loss of 13.1 million euros in the same period of 2018, a year-on-year increase of 138%. Wanda sports said the loss was due to a significant increase in losses due to the impact of stock compensation fees and other IPO related costs, as well as financing costs. At the third quarterly report release meeting, Liao Honghui, chief financial officer of Wanda sports, said that the focus of Wanda sports is still to reduce debt, improve debt, improve synergies within the group, and make full use of Wanda sportss light asset model and strong cash flow generation ability. Source: surging news editor: Zhong Qiming, nf5619

Wanda sports third quarter 2019 financial report shows that the companys total revenue in the third quarter was 245 million euros, up 8% year on year. Among them, WTC business increased by 14% year-on-year, accounting for 44% of total revenue, watch sports business increased by 80% year-on-year, accounting for 26% of total revenue, digital media property decreased by 62% year-on-year, accounting for 30% of total revenue.

In addition, the company had a net loss of 31.2 million euros in the third quarter and a loss of 13.1 million euros in the same period of 2018, a year-on-year increase of 138%. Wanda sports said the loss was due to a significant increase in losses due to the impact of stock compensation fees and other IPO related costs, as well as financing costs.

At the third quarterly report release meeting, Liao Honghui, chief financial officer of Wanda sports, said that the focus of Wanda sports is still to reduce debt, improve debt, improve synergies within the group, and make full use of Wanda sportss light asset model and strong cash flow generation ability.