(Yicai) Dec. 13 -- Shares in Wanda Film Holding surged by the exchange-imposed limit today after trading resumed following a time of suspension, after the biggest cinema operator in China said that its previous parent company debt-laden Dalian Wanda Group has sold a controlling stake to an investment firm owned by the chairman of movie production house China Ruyi Holding.

Wanda Film’s share price [SHE:002739] surged 10 percent to close at CNY13.70 (USD1.90) apiece.

Shanghai Ruyi Investment Management, which belongs to Ke Liming, has paid CNY2.2 billion (USD301.5 million) for a 51 percent stake in Beijing Wanda Investment, controller of Wanda Film, Beijing-based Wanda Film said yesterday. Ke already owns 49 percent of Wanda Investment, which he paid CNY2.3 billion (USD321.9 million) for in July.

The deal gives Ke 20 percent equity in Wanda Film. Tycoon Wang Jianlin, who owns Dalian Wanda, has had his stake diluted to 10.9 percent, becoming the second biggest shareholder.

The sale will give Dalian Wanda much needed funds to resolve its liquidity crisis. There are also reports that the Dalian-based company is in touch with insurance funds and plans to sell commercial real estate in first-and second-tier cities to raise funds.

In a brief reprieve, Dalian Wanda managed to reach a deal yesterday with investors it brought in ahead of the planned initial public offering of its unit Zhuhai Wanda Commercial Management Group in 2021. They will not hold the beleaguered real estate giant liable for failing to meet the agreed compensation terms now that the commercial property management arm has failed to go public by the end of this year.

Ruyi Holdings was set up by real estate giant China Evergrande Group and internet giant Tencent Holdings and changed its name to Hengten Networks after Evergrande exited. Ke is the second largest shareholder of Ruyi Holdings with a 16.3 percent stake, after Tencent with 20.5 percent equity.

Editor: Kim Taylor