Wanda Sports considering $1 billion sale of Ironman triathlon, Bloomberg reports

Wanda Sports Group Co., part of Chinese billionaire Wang Jianlin’s conglomerate, is considering selling the global Ironman triathlon business it bought in 2015 for est. USD 650 million. Wanda Sports Group Co. is working with an adviser and has held discussions with some private-equity buyers that expressed interest in the business according to unnamed sources. The company holds also other sports assets outside China like Infront Sports & Media AG and many more.

A deal could come after Wanda Sports declined to enter talks last year with The Professional Triathletes Organization, which was interested in acquiring the Ironman business. The organization said at the time that excessive leverage has hampered Wanda Sports’s ability to invest in Ironman operations. 

Wanda Sports shares have dropped about 63% in New York trading since their July 2019 debut, paring the company’s market value to about $409 million. With total debt at about $968 million, the company has an enterprise value of about $1.2 billion, according to data compiled by Bloomberg. 

Read more on Bloomberg.

IRONMAN Triathlon-owner Wanda Sports Group starts IPO process with target to raise US$500 million

According to two recent sources (NASDAQ, Renaissance Capital), Dalian Wanda Group is starting the IPO process for IRONMAN with a target range to raise US$500 million up to US$1 billion. 3athlon reported earlier in 2018 and 2019. full 162 page prelimary SEC Form F1 linked below.

Quote, NASDAQ:

IRONMAN to IPO: Global sports owner Wanda Sports Group files for a $500 million US IPO 

Wanda Sports Group, the sporting and live events unit being spun out of China's Wanda Group, filed on Friday with the SEC to raise up to $500 million in an initial public offering. 

Wanda Sports is one of the world's largest sports events, media and marketing platforms in terms of revenue in 2018, owning Infront Sports & Media, World Endurance Holdings (owner of the IRONMAN triathlon competition and brand) and Wanda Sports Co (owner of the China Cup International Football Tournament and the UCI Tour of Guangxi). 

The Beijing, China-based company traces its roots to 1980 and booked $1.3 billion in sales for the 12 months ended March 31, 2019. It plans to list on the Nasdaq under the symbol WSG. Wanda Sports Group filed confidentially on March 20, 2019. Morgan Stanley, Deutsche Bank and Citi are the joint bookrunners on the deal. No pricing terms were disclosed.  

The article IRONMAN to IPO: Global sports owner Wanda Sports Group files for a $500 million US IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.  

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO) , Renaissance International ETF (symbol: IPOS) , or separately managed institutional accounts may have investments in securities of companies mentioned.

Quote, Renaissance Capital:

IRONMAN to IPO: Global sports owner Wanda Sports Group files for a $500 million US IPO 

Wanda Sports Group, the sporting and live events unit being spun out of China's Wanda Group, filed on Friday with the SEC to raise up to $500 million in an initial public offering. 

Wanda Sports is one of the world's largest sports events, media and marketing platforms in terms of revenue in 2018, owning Infront Sports & Media, World Endurance Holdings (owner of the IRONMAN triathlon competition and brand) and Wanda Sports Co (owner of the China Cup International Football Tournament and the UCI Tour of Guangxi). 

The Beijing, China-based company traces its roots to 1980 and booked $1.3 billion in sales for the 12 months ended March 31, 2019. It plans to list on the Nasdaq under the symbol WSG. Wanda Sports Group filed confidentially on March 20, 2019. Morgan Stanley, Deutsche Bank and Citi are the joint bookrunners on the deal. No pricing terms were disclosed. 

1. NASDAQ: IRONMAN to IPO: Global sports owner Wanda Sports Group files for a $500 million US IPO
2. Renaissance Capital: IRONMAN to IPO: Global sports owner Wanda Sports Group files for a $500 million US IPO
3. Wanda Sports Group Company Limited, FORM F-1 as filed with the Securities and Exchange Commission (SEC) on June 7, 2019
4. China's Wanda files for U.S. IPO of sports unit including WTC's IRONMAN series to raise up to $500 million: sources
5. Wang Jianlin's sports holding within Dalian Wanda Group might consider an IPO and sale of overseas assets including Infront Sports & Media AG, World Triathlon Corp (Ironman)

China's Wanda files for U.S. IPO of sports unit including WTC's IRONMAN series to raise up to $500 million: sources

According to report by Reuters (by Kane Wu, Julia Fioretti, Julie Zhu, Joshua Franklin, Julia Fioretti, Simon Cameron-Moore) China's Dalian Wanda Group files just 4 years after the acquisiation of World Triathlon Corporation (WTC) in 2015 for U.S. IPO of sports unit including WTC's IRONMAN series to raise up to $500 million.[1] This would be the long expected step towards public trading of iconic races like IRONMAN Hawaii Triathlon on the Big Island of Hawaii.[2]:

Chinese conglomerate Dalian Wanda Group has filed confidentially for a U.S. initial public offering of its sports unit that could fetch up to $500 million, according to sources with direct knowledge of the matter. 

The company made the filing with the U.S. Securities and Exchange Commission for the listing, which could happen in the first half of this year, the sources said.
The IPO could raise between $300 million and $500 million, the people said, though one cautioned that $500 million might be high. 

A Wanda spokesman did not provide any immediate comment. 

Wanda’s sprawling business empire ranges from real estate to sport to cinemas, but it has been rattled in the past years by a government-led crackdown on overseas deals and high leverage. 

The company owned by Wang Jianlin, one of China’s richest men, has since started offloading domestic and overseas holdings, including stakes in cinema operator AMC Entertainment and Spanish soccer club Atletico Madrid and a handful of property developments. 

Other Chinese conglomerates such as HNA group and Fosun International (0656.HK) have also faced government pressure to cut down on what Beijing has termed irrational overseas deals. 

An IPO of Wanda’s sports assets would include Infront Sports & Media AG, a Swiss sports marketing company and World Triathlon Corp, the organizer and promoter of the Ironman race, three sources previously told Reuters. 

The two were acquired in 2015 for $1.2 billion and $650 million respectively. Wanda, while preparing the IPO, had also received offers for the businesses from a number of private equity firms, Reuters reported. 

Citigroup (C.N), Deutsche Bank (DBKGn.DE) and Morgan Stanley (MS.N) are working on the deal, the sources said. Citigroup and Deutsche Bank declined to comment. Morgan Stanley did not immediately respond to a request for comment. 

Chinese companies have dominated the ranks of those looking to go public worldwide, raising $58.2 billion in IPOs last year, accounting for 29 percent of global issuers, according to Refinitiv data. 

They have also been very active in U.S. listings, raising $9.1 billion last year, the highest level since 2014, Refinitiv data showed.

1. China's Wanda files for U.S. IPO of sports unit to raise up to $500 million: sources 
2. Bulle oder Bär - kommt ein Initial Public Offering im Ironman Triathlon?

Wang Jianlin's sports holding within Dalian Wanda Group might consider an IPO and sale of overseas assets including Infront Sports & Media AG, World Triathlon Corp (Ironman)

According to Reuters [1], Dalian Wanda might sell these recently in boight assets via an IPO. The two were acquired in 2015 for $1.2 billion and $650 million respectively. An IPO for Ironman was one of 3athlon's favourite 2011 scenarios, to attach all their customers even closer to the brand and lifestyle.[2] What kind of christmas present would this be, to not only race, but own also some stock of your very favourite leisure sport?!

Dalian Wanda Group Co., Ltd. brings together under one roof the newly founded Wanda Sports Holding Co., Ltd. Infront Sports & Media and the World Triathlon Corporation (WTC). Logos: Dalian Wanda Group, Infront, World Triathlon Corporation

Exclusive: China's Wanda mulls sport unit IPO and sale of overseas assets - sources

HONG KONG (Reuters) - China’s Dalian Wanda Group is considering a Hong Kong listing for its sports assets as part of efforts to rationalize its portfolio that could also include other sales, according to five people familiar with the situation.

The conglomerate last month tapped investment banks for a potential initial public offering of its sports businesses, three of the sources said. Citic Securities, China’s largest brokerage, is one of the banks involved, added one of them.

A spokesman for Citic Securities declined to comment.

Wanda’s businesses range from real estate to football and cinemas but it has been rattled in the past year by a government-led crackdown on overseas deals and high leverage. The company is owned by Wang Jianlin, one of China’s richest men.

An IPO of Wanda’s sports assets would include Infront Sports & Media AG, a Swiss sports marketing company and World Triathlon Corp, the organizer and promoter of the Ironman race, according to three of the people.

The two were acquired in 2015 for $1.2 billion and $650 million respectively.

The share offering would also include Wanda’s smaller sports assets in China, such as cycling and basketball leagues, one of them said. The public float would not involve Wanda’s 20 percent stake in the Spanish football club Atletico Madrid, valued at 67 million euros after a recent capital raise, the source said.

The IPO would most likely take place in Hong Kong, but bankers have also pitched for a U.S. listing, according to the people.

Wanda is separately looking to sell Sunseeker International, a British yacht maker it bought in 2013 for $495 million but whose financial performance it has failed to turn around, two other people said.

Wanda declined to comment. The people could not be named as the plans are confidential.

Wanda’s interest in property, sports and entertainment - accounting for more than $13 billion of its deals in the past five years - ran into official opposition last year when Beijing labeled overseas deals in those areas “irrational”.

In addition to sports, its holdings also include the cinema chain AMC Entertainment Holdings and movie studio Legendary Entertainment.

The company is also considering the merits of a pre-IPO funding round for the sports unit, according to one of the people. All plans are still at an early stage however as Wanda is seeking a chief financial officer for the sports business to lead the fundraising efforts, said another of the people.

Property forms the basis of the Wanda empire - its mixed use Wanda Plaza developments are common across China - but this too has put pressure on Wang’s business.

Last year, Chinese regulators told banks to stop providing funding for several of its overseas acquisitions as Beijing looks to curb the conglomerate’s offshore buying spree.

Shortly after, Wanda sold a portfolio of hotels and tourism assets, including 13 theme parks, for $9 billion to Guangzhou R&F Properties (2777.HK) and Sunac China (1918.HK). Five flagship overseas developments - in London, Chicago, Los Angeles, Sydney and Australia’s Gold Coast - are also available for sale, according to one source.

1. Exclusive: China's Wanda mulls sport unit IPO and sale of overseas assets - sources 
2. Bulle oder Bär - kommt ein Initial Public Offering im Ironman Triathlon?

Dalian Wanda Group in talks to acquire World Triathlon Corporation andIRONMAN triathlon for $850 million

According to South China Morning Post, Dalian Wanda Group, owned by China's richest man Wang Jianlin is in talks to acquire IRONMAN's parent company World Triathlon Corporation (WTC). An mass participation sports asset would follow other acquisitions in the sports and media segment. Switzerland based sports marketing firm Infront Sports & Media was bought for EUR 1.05 billion in February 2015. A group, that was interested in  WTC itself, but walked away from a deal. [1]

Maybe Infront's parent company can close a deal, certainly on a much lower price, than introduced from South China Morning Post. Not very reasonable sounds the "very high" price tag of $850m, considering assumed obligations like the $220m loan (due 2021) to pay a dividend to it's current owner Providence Equity partners and a $20 revolver due 2019 on WTC's balance sheet. Rating agency Moody's Investors Service has assigned a B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating (PDR) to World Triathlon Corporation ("WTC" or "the company") in 2014. [2]

South China Morning Post wasn't able to get a confirmation from any involved party, but several of our own insider sources confirmed the negotiations and a very specific time window to close the deal around 10th of August 2015:

Dalian Wanda outbid other potential buyers for Ironman and is now in negotiations to finalise a deal with its owner, private equity firm Providence Equity Partners, the person said this week. There is no certainty that Dalian Wanda will manage to finalise a deal, the person added.

The source asked not to be identified because the negotiations are confidential. A spokesman for Providence declined to comment, while representatives for Dalian Wanda and Ironman did not immediately respond to a request for comment.

1. China’s richest man in talks to buy Ironman triathlon competition for more than US$850m. Wang Jianlin's company, Dalian Wanda Group, is in talks to purchase triathlon firm, says source.
2. Rating Action: Moody's assigns B2 corporate family rating to World Triathlon Corporation, Global Credit Research - 17 Jun 2014