HNA is shedding its Deutsche Bank stake — and other overseas assets

The Chinese conglomerate has faced government pressure

New York /
Sep.September 07, 2018 03:16 PM

Chen Feng and at 850 Park Avenue (Credit: Wikipedia and Google Maps)

Chinese conglomerate HNA Group, under pressure from the government, is offloading most of its overseas investments.

The company will divest its whole stake in Deutsche Bank, the Wall Street Journal reported. Facing pressure from Chinese regulators and its creditors, HNA is seeking to shrink its balance sheet.

In addition to Deutsche Bank, the company is in talks to sell cargo handler Swissport International and California-based technology distributor Ingram Micro Inc., the report said. HNA also plans to unload in stakes in various Chinese banks, trusts and insurance companies.

HNA has sought to sell assets as it struggles under a $90 billion mountain of debt. The recent wave of divestments comes after a government mandate for the company to focus on its core business of operating Chinese airlines, the Journal said.

Earlier this year, HNA put most of its stake in Hilton spinoff Park Hotels & Resorts on the market. Meanwhile, federal regulators are scrutinizing its stake in 850 Park Avenue.

HNA also sold its office tower 1180 Sixth Avenue for $305 million and is trying to unload 245 Park Avenue, which it bought for $2.21 billion in May. [WSJ] — Meenal Vamburkar

 

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