HNA abandons sale of box unit Seaco when bids fall below limit
TROUBLED Chinese aviation conglomerate HNA Group has shelved a sale process for its container-leasing business Seaco after failing to reach an agreement on valuation, said people with knowledge of the matter
TROUBLED Chinese aviation conglomerate HNA Group has shelved a sale process for its container-leasing business Seaco after failing to reach an agreement on valuation, said people with knowledge of the matter.
HNA has agreed to sell more than US$20 billion of assets since 2018 in a bid to reduce its debt load.
Bloomberg reports that the financially strapped company plans to keep the business for now, according to the people, who asked not to be identified because the information is private.
HNA had been seeking more than US$1 billion for Seaco, which is controlled by the group's Shenzhen-listed Bohai Leasing unit, they said.
HNA had earlier short listed Apollo Global Management, China Cinda Asset Management, I Squared Capital and Sumitomo Mitsui Financial Group in the bidding for Seaco, the people said.
At least some of the suitors, including Cinda and I Squared, decided not to submit final offers by the deadline after balking at Hainan-based HNA's asking price.
The conglomerate is also pursuing other disposals including a sale of its tech outsourcing arm Pactera Technology International and Swiss aircraft-maintenance firm SR Technics, Bloomberg News has reported.
Seaco offers dry freight, refrigerated containers and tanks, according to its website. HNA and private equity firm Bravia Capital completed the $1.05 billion purchase of the company, formerly known as GE Seaco, in 2011 from owners that including General Electric.