HNA's Swissport intends to list this year
Cargo handling company Swissport, part of the Chinese conglomerate HNA [HNAIRC.UL], announced on Wednesday that it intends to seek an initial public offering on the Swiss stock exchange in 2018.
Benedetto, Gartland and Rothschild are Financial Advisors to Swissport for the proposed IPO, and the company is in the process of selecting one or more global coordinators.
HNA intends to remain as a long-term strategic shareholder.
Reuters, citing sources, said cash-strapped HNA is hoping the Swiss company could fetch a minimum valuation of CHF 2.7bn (USD 2.84bn), the price paid for the asset in 2015. The process to list Swissport could start in the second quarter, it added.
Press release:
Swissport Group ("Swissport"), the global leader in ground handling and cargo services, today announced its intention to seek an Initial Public Offering ("IPO") and listing of its shares on the SIX Swiss Exchange. The contemplated IPO is currently anticipated to take place in 2018 and Swissport expects to issue an intention to float announcement later this year. HNA Group Co., Ltd (together with its direct and indirect subsidiaries and affiliates, "HNA Group"), currently Swissport's sole shareholder, is expected to retain a long-term strategic shareholding following any such IPO. Swissport will continue to function as an independent company.
Swissport to build on its global leadership position and long-term strategy
Swissport is the world’s leading independent provider of ground and cargo handling services to the aviation industry, based on revenue and number of airports served. The company provides a full range of best-in-class services and tailored solutions in ground and cargo handling, which represents a critical component of its customers’ operations and business.
Eric Born, Group President and CEO commented that "the objective of the contemplated IPO is to accelerate Swissport’s long-term growth strategy, provide additional financial flexibility and liquidity, and position the company to strengthen its leadership position and service offerings in the industry".
Experienced management team with a successful track record
Swissport is led by an internationally diverse and highly experienced senior management team with extensive industry expertise and a proven track record in the air services and logistics operation industries. Under the company’s current leadership, Swissport has succeeded in growing total revenues, managing costs, introducing new products, and acquiring and successfully integrating new businesses. Swissport believes that its senior management team’s collective industry knowledge, successful record in responding to challenging economic conditions and achieving profitable revenue growth, and global outlook will enable the company to continue to execute its strategy and achieve long-term profitable growth.
Swissport is a wholly-owned independent subsidiary of HNA Group, a Fortune 500 company focused on tourism, logistics and financial services, with a strong strategic focus on and deep expertise in aviation and airport management. Following HNA Group’s acquisition of Swissport in February 2016, the company’s independent management team has been able to leverage and benefit from HNA Group’s resources, support, expertise, and global connections in aviation and tourism in order to accelerate its growth strategy and competitive position in the market.
Offer summary
Benedetto, Gartland and Rothschild are Financial Advisors to Swissport for the proposed IPO, and Swissport is in the process of selecting one or more global coordinators. HNA Group, currently Swissport's sole shareholder, intends to remain as a long-term strategic shareholder, and Swissport will continue to function as an independent company. It is envisaged that the proposed IPO will be made as a primary and/or secondary offering to retail and institutional investors in Switzerland and to certain qualified institutional investors in various other jurisdictions.
This announcement contains inside information as defined in the Market Abuse Regulation (EU) 596/2014 ("Market Abuse Regulation") and is disclosed in accordance with Swissport's obligations under the Market Abuse Regulation.
The announcement can be read here.
The Reuters report can be read here.