Daily Management Review

Funding Crunch Forces China's HNA To Put Up Assets For Sale: Reuters


Funding Crunch Forces China's HNA To Put Up Assets For Sale: Reuters
Highly indebted Chinese firm HNA Group is looking to raise funds to come out a massive cash crunch by putting up for sale the latest assets and this sprawling conglomerate reportedly met up with bankers on Tuesday for that purposes, reported news agency Reuters.
According to the report the conglomerate wants to put up for sale a hots of assets that range from its hotel project in frozen Harbin to its share sin the struggling online lender Dianrong and the insurance firm Bohai Life as well as brokerage HNA Futures. This wide range of assets put up for sale clearly shows the level to which the Chinese group is willing to go to sell off most of its non-core business assets. The group once had its business interests from Deutsche Bank to Hilton Worldwide.
Over the last one year, asset sales have been sped up by the finance-to-aviation group. However this is the first time that such a large list of about 20 assets has been presented by the group for sale to the banker according to the Reuters report.
The report did not have any comments from HNA.
Over the last few years, this Chinese group had been on an acquisition spree worth nearly $50 billion and it is now unwinding those acquisitions. At its peak of acquisitions, the conglomerate had stakes in banks, fund managers, hotels, property and airlines, among others.
HNA has pushed ahead with asset sales and has so far managed to sell off some of its interests in real estate and stakes in hotels groups following a high debt that the company had piled up and an increased government scrutiny over the aggressive foreign acquisitions that the company had been making. The company also holding negotiations for key overseas units such as Ingram Micro and the luxury $300 million-plus corporate “Dream Jet”.
The attempts of the company to scale back its operations to just its core assets was being assisted by a team led by China Development Bank and helping it with supervising the asset sales, reported Reuters last month citing sources with knowledge of the matter.
The report on Tuesday claimed that eight hotel and other property projects which includes a luxury Renaissance hotel in Shanghai and a commercial complex in the western city of Chengdu are sought to be sold by HNA. The report also mentioned a list for of assets for sale which included a section comprising of eight financial projects and another section that had four stakes in leasing, insurance and banking companies.
The stakes on the list included 20 percent of Bohai Life, 6.18 percent of peer-to-peer lender Dianrong and over 40 percent of financial services firm Sino Guarantee as well the entire company of HNA Futures which is a wholly owned brokerage unit of HNA.

Science & Technology

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

Mars Had Earth-like Salt Lakes

Study: AI is not as profitable as you might think

Porsche, Boeing set to develop flying electric car

Samsung to invest $ 11 billion in new generation displays

US is betting on Nokia and Ericsson to replace Huawei

UPS becomes first to receive full regulatory approval for UAV shipping in USA

World Politics

World & Politics

Has Chile Put All Its Eggs In One Basket To Turn Towards Renewable Energy?

‘We Are Woefully Underprepared’ As Glaciers Meltdown Leaving Global Water Supply At Risk

US to reconsider medical data security laws

Vale hiding information about problems at Brazilian dams could result in death of 270 people

US Lawmakers Introduce Bill About Xinjiang Uygur Camps In China

European Council agrees to extend Brexit again

Pressure From China Forces Maserati To Dissociate From Film Awards Event In Taiwan

China to replace Hong Kong's Carrie Lam