China's Dalian Wanda group has increased its bid to USD $4.4 billion to buy out its Hong Kong-based Dalian Wanda Commercial Properties. The group plans to delist from Hong Kong and take the unit private. The group may decide to relist the company in Shanghai for better valuations. The current offer is 10 percent higher than the initial offer made on March 30.

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The bid is yet to receive the approval of the company's shareholders and regulatory authorities. Under this deal, the property group, along with a few other companies such as Ping An Insurance Group and China Railway Group, will purchase all the shares of Dalian Wanda Commercial Properties.

Dalian Wanda Commercial Properties was listed in Hong Kong in December 2014. Despite its solid debut, the company shares saw a lull in their pricing due to concerns about its future performance. The company has already applied to be relisted in Shanghai. However, there are over 700 companies waiting to be listed on the exchange. Chinese authorities are particularly vigilant about companies coming back to the domestic exchanges after a stint abroad.

In a filing made with the Hong Kong Exchange, the group stated that it "has noted the recent media reports on possible policy changes in [China] relating to companies delisting overseas and returning for an A share."

The offer is the biggest buyout deal in the history of the exchange, beating Alibaba's proposal worth USD $2 billion to take its Hong Kong-traded unit private in 2012.

Dalian Wanda Group claims that Hong Kong-listed shares are "seriously undervalued."

TagsDalian Wanda Group, Dalian Wanda Commercial Properties