HNA touts assets for sale as funding crunch intensifies


Embattled group: Chen Feng, co founder and chairman of the conglomerate speaking to reporters at an aviation event in Haikou, Hainan province recently. The finance-to-aviation group has been ramping up asset sales over the past year due to soaring debt and increased government scrutiny of aggressive deal-making. — Reuters

BEIJING: China’s indebted HNA Group met bankers to tout the latest assets that the sprawling conglomerate is putting on the block as it looks to raise funds and stave off an intensifying cash crunch.

The range of assets, spanning a hotel project in frozen Harbin and stakes in struggling online lender Dianrong, insurer Bohai Life and brokerage HNA Futures, underscores how the group is shedding almost all non-core businesses as it pares back an empire that once spread from Deutsche Bank to Hilton Worldwide.

The finance-to-aviation group has been ramping up asset sales over the past year. However the possible sale of many on the list of at least 20 assets presented to bankers and seen by Reuters has not been previously reported.

HNA did not respond to requests for comment.

The embattled group is more than a year into the process of unwinding a US$50bil acquisition spree that at its peak netted the company stakes in banks, fund managers, hotels, property and airlines, among other assets.

But faced with soaring debt and increased government scrutiny of aggressive deal-making, HNA has pushed ahead with asset sales that have so far included real estate and stakes in hotels groups, and discussions on key overseas units such as Ingram Micro and its luxury US$300mil-plus corporate “Dream Jet”.

Reuters reported last month, citing people familiar with the matter, that China Development Bank was leading a team to supervise asset disposals as the group looks to scale back operations to just core assets.

The document from the meeting at a Beijing hotel yesterday indicated HNA was looking to sell eight hotel and other property projects, including a luxury Renaissance hotel in Shanghai and a commercial complex in Chengdu. — Reuters


Business , Corporate News , HNA , debt , assets , sale , funding

   

Across The Star Online