HONG KONG, March 10 (Reuters) – China’s HNA Group is selling a controlling stake in its Hong Kong-listed construction firm to Blackstone Group for HK$7.02 billion ($894.31 million), according to a regulatory filing, the latest asset disposal by the embattled Chinese conglomerate.
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Hong Kong International Construction Investment Management Group said in a filing late on Friday that Times Holdings II Ltd, a company controlled by Blackstone, has agreed to buy all the shares owned by HNA Group’s finance arm HNA Finance I, or 69.54 percent of the firm.
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The purchase price represents HK$3 per share, a 14.5 percent premium over Hong Kong International Construction’s Friday closing price of HK$2.62. Blackstone has also offered to purchase the remainder of the shares in the market at the same price for a maximum of HK$3.7 billion, in compliance with exchange rules, though it does not intend to privatise the company, according to the same filing.
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Faced with soaring debts and China’s crackdown on aggressive dealmaking firms, HNA Group has been offloading its assets that spans property to aviation.
Hong Kong International Construction, a property construction and investment firm, last month sold its last land parcel in Hong Kong.
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HNA is in active discussion to sell its budget airline Hong Kong Express to Hong Kong’s Cathay Pacific Airways , the companies said last week.