Singapore Inc’s overpriced ticket to Hainan

High price: A Hainan Airlines aircraft on the tarmac at the airport in Beijing, One crucial advantage of a deal could be a seat at the table of China’s domestic aviation market. — Reuters

IS there any valuation at which Temasek Holdings Pte could buy into Hainan Airlines Holding Co at a decent price? Considering the indebtedness of China’s most highly rated carrier, it’s hard to think of one.

Hainan Air’s shares have been suspended for six months while controlling shareholder HNA Group Ltd is in intensive care. But the seven billion yuan (US$1.1bil) valuation for a 20% stake to a group including a Temasek-owned fund gives you a decent idea of what it might be worth.