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HNA mulls asset sales, suggesting it will fall into line with Beijing's will
来源：shippingazette.com 编辑：编辑部 发布：2017/11/30 10:36:08
TROUBLED Chinese aviation giant HNA Group is considering selling assets, suggesting the company is buckling under government pressure to curb its buying spree that cost the company billions and strained its finances, reports Bloomberg.
CEO Adam Tan said HNA could sell buildings and holdings in industries where investment is being restricted by the Chinese government.
Lately HNA was in hot water in Switzerland, accused by the regulatory Swiss Takeover Board of supplying false information and failing to disclose ownership stakes of its executives in acquiring a company for US$1.5 billion last year.
In the takeover of Swiss air-travel logistics company Gategroup Holding, Hainan-based HNA allegedly inaccurately represented the ownership stake held by Beijing resident Guan Jun, as well as that of Bharat Bhise, chief executive of Hong Kong-based private-equity and investment advisory firm Bravia Capital.
Said Mr Tan: "If some sectors are now restricted by government, I will consider selling assets I bought in these sectors. We will not invest in anything the government does not support."
The comments help illustrate how HNA, which in recent years emerged as one of China's top acquirers of foreign assets, is falling in line with President Xi Jinping's campaign to stem capital outflows.
Asset disposals could also help the group pay off debt and reduce its interest expenses, which have climbed to levels higher than at any other non-financial company outside of the US and Brazil.
"They are likely to sell the most liquid assets first, including those which are already listed," said Nigel Stevenson, an analyst at financial research firm GMT Research in Hong Kong. "Everybody knows that they are heavily indebted and trying to sell. Therefore, there will be tough negotiations."
CEO Adam Tan said HNA could sell buildings and holdings in industries where investment is being restricted by the Chinese government.
Lately HNA was in hot water in Switzerland, accused by the regulatory Swiss Takeover Board of supplying false information and failing to disclose ownership stakes of its executives in acquiring a company for US$1.5 billion last year.
In the takeover of Swiss air-travel logistics company Gategroup Holding, Hainan-based HNA allegedly inaccurately represented the ownership stake held by Beijing resident Guan Jun, as well as that of Bharat Bhise, chief executive of Hong Kong-based private-equity and investment advisory firm Bravia Capital.
Said Mr Tan: "If some sectors are now restricted by government, I will consider selling assets I bought in these sectors. We will not invest in anything the government does not support."
The comments help illustrate how HNA, which in recent years emerged as one of China's top acquirers of foreign assets, is falling in line with President Xi Jinping's campaign to stem capital outflows.
Asset disposals could also help the group pay off debt and reduce its interest expenses, which have climbed to levels higher than at any other non-financial company outside of the US and Brazil.
"They are likely to sell the most liquid assets first, including those which are already listed," said Nigel Stevenson, an analyst at financial research firm GMT Research in Hong Kong. "Everybody knows that they are heavily indebted and trying to sell. Therefore, there will be tough negotiations."