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Peggy Sito

HNA Group, one of China’s largest global asset buyers spawned from the country’s largest privately owned airline, will be divided into four parts, with each unit operating independently, according to a restructuring blueprint unveiled over the weekend.
The development pushed the share price of its listed unit higher in Hong Kong.
“As the bankruptcy reorganisation has entered the final stage, we will do our best to ensure that risks are resolved in a steady and orderly manner,” said Gu Gang, executive chairman and the head of the working committee responsible for untangling the group’s estimated 500 billion yuan (US$77.3 billion) of debts.
He added that if the bankruptcy reorganisation is successfully completed, HNA will be split into four completely independent sectors: aviation, airport, financial and commercial.

The Chinese conglomerate’s Hong Kong-listed unit HNA Technology Investments Holdings closed 5.48 per cent higher at HK$0.77 on Monday. Its other mainland-listed subsidiaries such as Hainan Airlines rose 4.81 per cent on Friday, before the meeting on Saturday. The Shanghai and Shenzhen stock exchanges are closed on Monday and Tuesday on account of the Mid-Autumn Festival holidays.
Haikou-based HNA Group was built on the foundations of Hainan Airlines in 1993 by Chen Feng, who worked for the civil aviation authority before striking out on his own. With a handful of aircraft, Hainan Airlines quickly built a business flying holiday makers and Russian tourists from China’s frigid north to the country’s sole tropical island, long regarded as “China’s Hawaii” for its beaches, azure waters and holiday resorts.
Since 2010 HNA stepped up its global expansion acquiring around 40 overseas assets, including Hilton Hotels and Resorts, Deutsche Bank and Ingram Micro, with the total transaction amount exceeding US$50 billion. Later, it began facing financial difficulties because of tightening regulatory controls and liquidity concerns and started seeking buyers for its assets.
“Each business will be led by new shareholders and they will be completely independent of each other to ensure that each focuses on its core business,” HNA’s official WeChat account quoted Gu as saying on Saturday, during the group’s regular meeting on operational safety.
Each unit, in accordance with the restructuring plan, will soon list out the future direction of development, he said.

As part of the restructuring, its flagship unit Hainan Airlines, said earlier this month that Liaoning Fangda Group Industrial, a conglomerate with business in the carbon, steel and pharmaceutical sectors, will be the strategic investor for HNA’s airline business.
Hainan Airlines should keep in mind its original mission and cannot repeat the same mistakes, Gu said. He also said the new companies after the restructuring should formulate effective plans to face market competition.
The revamped HNA companies will also enhance communication channels with creditors to win their trust and support, he added.


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HNA Group to be broken into four independent units as Chinese conglomerate’s restructuring enters final stretch

HNA Group’s restructuring is slowly taking shape. Photo: Imaginechina via AFP

Chen Feng, Chairman of China's Hainan Airlines, poses for a picture in Haikou. 23JUN17 SCMP / Xiaomei Chen

Gu Gang, executive chairman of HNA.  Photo: Handout

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graphic for online Some of HNA's asset disposals so far in 2018 Time of announcement Asset Amount Buyer January The One York office A$205 million Blackstone building in Sydney, Australia (US$165 million) Group February Shareholdings at Around 300 Assorted Deutsche Bank million euros investors (US$375 million) February Two land plots in HK$16 billion Henderson Land Kai Tak, Hong Kong (US$2 billion) Development March One land plot in HK$6.36 billion Wheelock Kai Tak, Hong Kong (US$811 million) Company March Shareholdings at Park Hotels and Resorts US$1.4 billion Park Hotels and Resorts and other investors March Shareholdings at Hilton Grand US$1.14 billion Assorted investors Vacation March Hainan Gaohe 1.93 billion yuan Sunac China Property Development and Hainan Haidao (US$305 million) Construction Logistics June Shares in Hainan Airlines US$1.1 billion Consortium led by Temasek July Hotel company US$2 billion Radisson Holdings August 30 per cent stake in air leasing group Avolon US$2.2

HNA’s key decision-making body leaves out Chen Feng’s name, signalling founder’s exit from China’s biggest asset buyer

Chen Feng, then Chairman of HNA Group, during an interview in his office in the Hainan provincial capital of Haikou on 23 June 2017. Photo: Xiaomei Chen

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HNA will be split into four independently run businesses: aviation, airport, financial and commercial
Shares of HNA’s Hong Kong-listed unit get a boost from restructuring news



HNA will be split into four independently run businesses: aviation, airport, financial and commercial, says executive chairman Gu Gang, who is leading the group’s revamp.


Aviation

Dealing with debt

Hainan

HNA Group to be broken into four independent units as Chinese conglomerate’s restructuring enters final stretch

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} HNA will be split into four independently run businesses: aviation, airport, financial and commercial Shares of HNA’s Hong Kong-listed unit get a boost from restructuring news

HNA will be split into four independently run businesses: aviation, airport, financial and commercial

Shares of HNA’s Hong Kong-listed unit get a boost from restructuring news