HNA seeks more banks for delayed S’pore trust IPO
KUALA LUMPUR: HNA Commercial REIT is seeking to add arrangers to its planned Singapore initial public offering as Bank of America Corp walks away from the deal, people with knowledge of the matter said.
The property trust, backed by embattled Chinese conglomerate HNA Group Co, has been reaching out to investment banks to gauge their interest in taking a senior role on the deal alongside DBS Group Holdings Ltd, according to the people.
The listing, which was slated to seek more than S$400mil (US$295mil), will be delayed at least until the autumn, one of the people said, asking not to be identified because the information is private.
HNA Group said July 22 that Bank of America’s participation in an unspecified investment trust IPO involving one of its units was terminated for “commercial reasons.” HNA Commercial REIT had been planning to gauge investor demand in mid-June and complete the offering in July, people with knowledge of the matter said last month.
It will be backed by commercial properties in Australia, Singapore and London worth about S$1bil, according to the people.
Several of HNA Group’s deals have faced challenges since Chinese regulators began assessing the risks that the company and other serial dealmakers pose to the nation’s financial system.
HNA Group is fielding additional questions from banks working to finance its proposed US$1bil takeover of Singapore logistics operator CWT Ltd, people with knowledge of the matter said this week.
Representatives for Bank of America, DBS and HNA Commercial REIT declined to comment. The situation remains fluid, and details of the HNA Commercial REIT offering could change, according to the people.
US officials are examining HNA Group’s proposed purchase of SkyBridge Capital, the hedge-fund firm founded by White House communications director Anthony Scaramucci, while the European Central Bank is considering a review of its stake in Deutsche Bank AG, people with knowledge of the matter have said. — Bloomberg