HNA could sell unit stakes to new USD 1.5bn fund to pare debt - report - Clarification
09 MAY 2018
[The headline of this Opp has been amended to clarify the fund's size as USD 1.5bn. The text remains unchanged]
Chinese conglomerate HNA Group could sell stakes in some of its subsidiaries to a new USD 1.5bn fund in a move to reduce its debt, according to a newswire report on 8 May.
Bloomberg, citing sources familiar with the matter, reported that stakes in such HNA units as Tuniu [NASDAQ:TOUR], Tianjin Airlines, SR Technics, Hong Kong Airlines, Avolon, Swissport, St. Regis hotel in Bora Bora and Hilton hotel in Tahiti are among possible targets.
The fund will seek to raise money from external investors who will be guaranteed annual returns of 8%-15%, the item said. The fund could also make investments in other non-HNA assets, it added.
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