Wang Jianlin, the founder of Wanda Group, once said he would create a tourism empire so big it would eclipse Walt Disney Co. The tourism sites will retain Wanda's name. The deal is expected to be signed by the end of the month, Bloomberg reported.
Wanda founder Wang Jianlin, one of China's richest businesspeople, said past year he wanted to challenge Disney as a global theme park brand.
The transaction is to allow Sunac and Wanda to "fully play" to their advantages, the statement said.
First is the recent probe by the banking regulator and the subsequent funding pressure that put on the company. The Wanda Group has other businesses, such as financial services.
The deal will see Dalian Wanda Commercial Properties Co.
"Such acquisition is radical and risky as it will stretch Sunac's financial position to the extreme given the low return and slow asset turnover of the projects", BOCI analyst Gurney Liu in Beijing said in a report.
Moving California fires threaten hundreds of homes
In British Columbia, more than 7,000 people have fled their homes due to wildfire threats, according to Canada's CBC . At least 10 structures, including homes, have been destroyed while five others were damaged, officials said .
The developer has a negative outlook from Moody's, which said in April Sunac's leverage had deteriorated significantly due to large amounts of debt it had raised to support acquisitions.
Only three of Wanda's planned parks have been completed to date.
The conglomerate will also sell 76 hotels for 33.6 billion yuan.
Shares in Wanda Hotel Development surged more than 150 per cent after the news.
Wanda has not yet received approval to be relisted on mainland exchanges. Sunac China will "continue to further discuss and cooperate with Dalian Wanda Commercial Properties in other projects as well as movies and other areas in the future", the company said. Such failure would risk a stampede among creditors, fearing Wanda would lose its financing channel.
A third reason revolves around speculation that Wanda may buy Sunac's ownership in Leshi Internet Information &Technology Corp, an asset that could have synergy with Wanda's entertainment pivot.
The source said Wanda Film had always been seeking an opportunity to buy streaming video sites.