HNA to Buy Air Travel Logistics Firm for $1.5 Billion
April 11 2016 - 7:10AM
Dow Jones News
Chinese airlines and shipping conglomerate HNA Group Co. is
buying a Swiss air travel logistics company for $1.5 billion, the
latest big overseas deal for the ambitious Chinese firm.
HNA Group made an all-cash offer to buy Zurich-based gategroup
Holding AG for 53 Swiss francs ($55.40) a share, a 21% premium to
its Friday closing price, according to a statement Monday.
The conglomerate has been aggressively expanding its reach in
the aviation and logistics industry outside China. The deal marks
HNA's second major planned overseas acquisition this year, after it
agreed to buy U.S. technology distributor Ingram Micro Inc. for
about $6 billion in February.
The acquisitive Chinese company, based in southern Hainan
province, evolved from marine shipping into operations that include
transportation, logistics, tourism, banking and insurance. Its
annual revenue has grown to more than $20 billion due to a series
of overseas acquisitions, senior executive Hao Wang told The Wall
Street Journal last month.
HNA made its first splash in Switzerland last July by acquiring
the air cargo company Swissport Group for $2.8 billion. The
company's other overseas forays include a $2 billion purchase of
Irish aircraft leasing firm Avolon Holdings Ltd., and stakes in
foreign airlines such as Aigle Azur and ACT Airlines Inc.
HNA intends to delist gategroup from the Swiss stock exchange
and allow the company to operate autonomously within the
conglomerate. The company will remain based in Switzerland and keep
its current management team.
The deal requires that 67% of shareholders accept the offer and
needs regulatory approval.
Gategroup specializes in catering and hospitality and onboard
products and services. In 2015, gategroup recorded total revenue of
around $3 billion.
Write to Kane Wu at Kane.Wu@wsj.com
(END) Dow Jones Newswires
April 11, 2016 06:55 ET (10:55 GMT)
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