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HNA Group’s assets attract interest from Fosun, JD.com

(Bloomberg) – Fosun Group and a branch of JD.com Inc. are among contenders considering investing in HNA Group Co.’s domestic operations as the indebted Chinese conglomerate is reorganized after coming under government control , said people familiar with the matter. .Ping An Insurance Group Co., Juneyao Airlines Co. and Air China Ltd. also studied HNA’s assets, the people said, asking not to be identified as the information is private. Any deal could bring in billions of dollars, the people said. The once-high-flying conglomerate invested more than $ 40 billion in a series of trophy assets across the world before being held back by the government, which has started to take control a little over a year ago. The pandemic hit the remaining activities of HNA. The company still owns airlines, airports and retail assets in China. Some bidders could team up for an investment and the structure of any potential deal has not been finalized, the people said. Discussions are ongoing and there is no certainty that potential investors will make any concrete offers, the people said. Representatives for Air China, HNA, Juneyao and Ping An Insurance declined to comment, while representatives for Fosun and JD did not immediately respond to requests for comment. Billionaire Guo Guangchang’s Fosun Group, founded in 1992, is a Chinese conglomerate with pharmaceuticals and retail travel and insurance. JD.com, one of China’s largest e-commerce platforms, has expanded into healthcare and logistics. JD Logistics Inc. has obtained approval from the Hong Kong Stock Exchange for an initial public offering that could raise around $ 4 billion, Bloomberg News reported this week. Shanghai-based private airline Juneyao Air announced Thursday. its intention to invest 5 billion yuan. ($ 772 million) in a joint venture that will buy airline assets, but she did not provide details. Separately, Caixin reported that HNA Group’s airline assets are the target, citing an unidentified person. George Soros’ money, the company emerged from near obscurity to mount a buying frenzy that saw it become the major shareholder of Deutsche Bank AG and Hilton Worldwide Holdings Inc. It was once the child The poster of a cabal of Chinese empire-builders who were borrowing quickly for The Frenzy ultimately brought HNA’s debt to around $ 86 billion by the end of 2017. It began to lose assets in early 2018 under pressure from the government, which had started cracking down on the activities of its largest offshore buyers to limit financial risks and damage to China’s reputation. In December, HNA agreed to sell Ingram Micro Inc. for around $ 7.2 billion, its biggest asset sale to date. The Chinese government wants to bring HNA back to its roots as an airline and therefore plans to transfer the non-aeronautical assets of HNA through a trust. , Bloomberg News reported in January. The conglomerate has started seeking strategic investors for Shenzhen-listed CCOOP Group Co., which operates convenience stores, department stores, logistics parks and online financial services, according to a March announcement on HNA’s website. Its airport assets and airline business are also seeking strategic investors, according to separate statements on the website. HNA Infrastructure Investment Group Co., which develops real estate projects, including airport industrial parks, and Hong Kong-listed Hainan Meilan International Airport Co., are both owned by HNA. HNA’s aviation business is among the most large Chinese carrier groups, with stakes in Hainan Airlines Holding Co., Air Changan, the low-cost airline Beijing Capital Airlines Co., and Suparna Airlines, also known as Yangtze River Airlines Co., according to the site HNA Web. The group also owns a majority stake in jet lessor Avolon Holdings Ltd. through its Bohai Leasing Co. unit, Hainan Airlines reported a net loss of 2.6 billion yuan in the first quarter of 2021 after losing 64 billion yuan last year, according to its latest financial report. (Add more details on HNA’s assets from 11th paragraph.) For more articles like this please visit us at bloomberg.com Subscribe now to stay ahead with the source of business news the most reliable. © 2021 Bloomberg LP


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