BEIJING, July 20, 2020
/PRNewswire/ -- Wanda Sports Group Company Limited (the
"Company" or "Wanda Sports Group") (NASDAQ: WSG)
today announced that the Company has completed the previously
announced sale of The IRONMAN Group to Advance, a private,
family-owned business that invests in a broad range of media and
technology companies, reflecting an enterprise value of
US$730 million (before closing
adjustments). It also announced changes in its Board of
Directors.
As a result of the sale, net proceeds are expected to be in the
range of US$380 million (which
reflects deductions for existing indebtedness and transaction
expenses, as well as the Company's expectations as to the ultimate
outcome of an ongoing post-closing purchase price adjustment
process). The Company used a portion of the net proceeds to repay
the principal amount of US$240
million and related interest and fees outstanding under its
existing 364-day facility, and intends to imminently use a portion
of the net proceeds to repay US$50
million outstanding under a promissory note issued to
Wanda Sports & Media (Hong Kong)
Holding Co. Limited. As previously reported, the Company intends to
use the balance of the net proceeds, subject to business
conditions, to return capital to its shareholders (either through a
special dividend or a share repurchase program), in either case,
subject to shareholder approval, and/or for general corporate
purposes.
Mr. Hengming Yang, President and CEO of Wanda Sports Group said:
"The successful completion of this transaction within the
anticipated time frame was a priority for us. We believe that
through this completion, we achieved one of the critical steps
towards increasing our financial stability and reducing debt
leverage. I am pleased that The IRONMAN Group will continue to work
with us to further expand our mass participation business, in
China, for the benefit of all of
our stakeholders. We remain committed to growing our Mass
Participation segment globally and driving further growth in the
Chinese market."
Mr. Brian Liao, Chief Financial
Officer of Wanda Sports Group commented, "We are pleased with the
additional liquidity we are able to unlock through the application
of a portion of the proceeds of the sale that closed today. The
resulting reduction in our indebtedness will generate a
meaningful finance cost savings of 33% compared to the previous
year."
Following completion of the transaction, the Company will
continue to operate its three business segments. Its Mass
Participation segment will include the mass participation sports
events owned, operated or licensed by Infront and Wanda Sports
China. The Company will continue to operate IRONMAN® and
IRONMAN® 70.3® triathlon series, Rock 'n' Roll Marathon Series® and
Epic Series® off-road mountain bike series races of The IRONMAN
Group in China under an exclusive
event license agreement.
In connection with the sale, Andrew
Messick, President and Chief Executive Officer of The
IRONMAN Group, resigned, effective as of today, from his position
as Director of Wanda Sports Group. The entire Wanda Sports Group
team and the Company's Board of Directors thank Andrew for his
valuable contribution to the Company and wish him continued success
as CEO of The IRONMAN Group.
Effective as of today, Mr. Maojun (John)
Zeng has been appointed Chairman of the Board of Directors
of the Company. Mr. Zeng succeeds Mr. Lin Zhang, who steps down from his positions as
Chairman and Board member and will assume a new role within the
broader Wanda Group. Mr. Zeng brings with him a wealth of
experience based on holding a range of executive and other
positions within the Wanda Group. Effective today, Mr. Zeng also
joins, in place of Mr. Zhang, each of the Board's three board
committees (the Audit Committee, the Compensation Committee and the
Nomination and Corporate Governance Committee).
Since July 2017, Mr. Zeng has
served as President of the Wanda Film Group, part of the Wanda
Cultural Industry Group. Mr. Zeng served as Senior Vice President
of Wanda Cultural Industry Group from October 2016 to July
2017. He also has served as a director of AMC Entertainment
Holdings, Inc., an indirect subsidiary of Wanda Group, since
February 2016 and as Chairman of the
board from March 2018 until
December 2019. Mr. Zeng has served as
the President of Wanda Film Holding Co., Ltd. (formerly known as
Wanda Cinema Line Corporation), a subsidiary of Wanda group, since
June 2015, and has served as a member
of its board of directors since January
2013. Since joining the Wanda Group in 2006, Mr. Zeng has
held other positions within the Wanda Group. Mr. Zeng holds an
undergraduate degree and a master's degree in business
administration from Renmin University in China.
About Wanda
Sports Group
Wanda Sports Group is a leading global sports events, media and
marketing platform with a mission to unite people in sports and
enable athletes and fans to live their passions and dreams. Through
its businesses, Infront and the Wanda Sports China, Wanda Sports
Group has significant intellectual property rights, long-term
relationships and broad execution capabilities, enabling it to
deliver inspiring sports event experiences, creating access to
engaging content and building inclusive communities. Wanda Sports
Group offers a comprehensive array of events, marketing and media
services through its three primary segments: Spectator Sports,
Digital, Production, Sports Solutions (DPSS) and Mass
Participation. Wanda Sport Group's full-service platform creates
value for its partners and clients as well as other stakeholders in
the sports ecosystem, from rights owners, to brands and
advertisers, and to fans and athletes.
Headquartered in China, Wanda
Sports Group has more than 53 offices in 16 countries with over
1,200 employees around the world. For more information,
please visit http://investor.wsg.cn/investor-relations.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include but are not limited to
management quotes and the Company's financial outlook. These
forward-looking statements can be identified by terminology such as
"will," "estimate," "project," "predict," "believe," "expect,"
"anticipate," "intend," "potential," "plan," "goal" and similar
statements. The Company may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission ("SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements
and, consequently, could be affected by the uncertain and
unprecedented impact of COVID-19 on the Company's business and
operations and the related impact on its liquidity needs. These
forward-looking statements include, but are not limited to,
statements about: the impact of the spread of COVID-19 and related
mitigation efforts on the Company's business, operations and
operating results; the Company's goals and strategies, including
following the completion of the sale of the IRONMAN Group; the
expected growth in the Company's industry; the Company's
expectations regarding its ability to attract rights-in partners
and monetize their rights through rights-out arrangements; changes
in consumer behavior and consumer and corporate spending, including
as a result of the COVID-19 crisis; the Company's ability to reach
acceptable levels of engagement with its athletes following the
COVID-19 crisis; the Company's future business development, results
of operations and financial condition; competition in the Company's
industry; general economic and business conditions, including as a
result of the COVID-19 crisis; the outcome of discussions with
rights owners and lenders to mitigate the impact of the effects of
COVID-19 on the Group; and assumptions underlying or related to any
of the foregoing as well as risks, uncertainties, and other factors
described in "Risk Factors" and elsewhere in the Company's annual
report on Form 20-F for the year ended December 31, 2019, which is available on the
SEC's website at www.sec.gov. Additional information will be made
available in future filings that the Company makes from time to
time with the SEC.
In addition, any forward-looking statements contained in this
press release are based on assumptions that the Company's believes
to be reasonable as of this date. The Company undertakes no
obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
except as required by law.
For investor and media inquiries, please contact:
Wanda Sports Group
Edith Kwan
Tel: +86 (10) 8558 7456
E-mail: ir@wsg.cn
For inquiries related to Advance, please contact:
Advance (www.advance.com)
Naomi Tudhope
E-mail: ntudhope@advance.com
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SOURCE Wanda Sports Group Company Limited