Monday, 26 August 2019

More sales at the struggling HNA Group.

RRJ Capital, an Asian private equity firm has formalised a consortium to invest in the troubled HNA Group to the tune of $4 billion, according to local sources. 

HNA has had to offer for sale a number of its assets, including hotels, real estate, and now its US electronics distributor Ingram Micro Inc.  It was only a relatively short time ago that the firm had purchased Ingram for around US$6 billion, part of a raft of investments totalling around US$50 over the last five or so years.

There is still a possibility the airline side of the HNA group could be broken up and offered for sale as the group struggles to stem debts and losses as well as complying with new Chinese regulations and restrictions. In March it confirmed its budget carrier Hong Kong Express Airways was to be sold to Cathay Pacific Airways for HK$2.25 billion US$287 million in cash.

It is not the first time RRJ Capital has purchased businesses from HNA,  earlier this year they agreed to take on the airline caterer Gategroup Holding AG from HNA.  The Swiss-based company was tightlipped about the total sales price, however, according to analysts, it's likely that a cool US$2.8 billion changed hands. 

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