(Yicai) Dec. 6 -- Real estate magnate Wang Jianlin, whose conglomerate Dalian Wanda Group faces mounting debt repayment pressure, plans to sell more equity in China’s biggest cinema operator, handing control of Wanda Film Holding to an investment firm owned by the chairman of movie production house China Ruyi Holdings. 

Shanghai Ruyi Investment Management, which is owned by Ke Liming, will buy the remaining 51 percent equity in Beijing Wanda Investment, which controls Wanda Film, Wang’s film unit said in a stock exchange filing today, without revealing the value of the deal. Ke already owns 49 percent of Wanda Investment, which he paid CNY2.3 billion (USD321.9 million) for in July.

This will give Ke 20 percent equity in Wanda Film while Wang’s stake will be diluted to 10.9 percent. Wang will become the second biggest shareholder through his subsidiary Shenxian Rongzhi Xingye Management Consulting Center.

Pending the change in controller, trading in Wanda Film’s shares [SHE: 002739] in Shenzhen has been halted. 

Ruyi Holdings was set up by real estate giant China Evergrande Group and internet giant Tencent Holdings and changed its name from Hengten Networks after Evergrande exited. Ke is the second largest shareholder of Ruyi Holdings after Tencent with a 16.3 percent stake.

Wanda Film had 877 theaters and 7,338 screens as of Sept. 30, accounting for 16.5 percent of China’s cinema market, the Beijing-based company’s third-quarter financial report showed. 

It had a net profit of CNY1.1 billion for the first three quarters of the year, versus a net loss of CNY533 million (USD74.6 million) a year ago, as China’s movie market recovers from the impact of the pandemic. Revenue surged 47 percent to CNY11.3 billion (USD1.6 billion).