TROUBLED Chinese aviation giant HNA Group is looking to sell a number of its transport and logistics assets, including the container lessor Seaco and the logistics company Ingram Micro.
In a commentary, Wells Fargo Securities noted that there have been reports since January in the Chinese media that HNA is looking to sell Seaco, reportedly the fourth-largest container lessor in the world after Triton International, the Florens subsidiary of Cosco Shipping Development and Textainer.
Reports of the possible sale of Seaco have received new publicity after a report by Bloomberg that HNA has hired an adviser for a possible divestiture of Seaco from HNA's Bohai Capital Holding,
'Surveying the competitive landscape for potential buyers, we think the target audience includes financial buyers or strategic operators,' wrote Michael Webber of Wells Fargo.
Those strategic buyers would include Triton, Textainer and CAI International. Wells Fargo said that HNA and Bravia Capital acquired Seaco from General Electric in 2011 for $1.05 billion and that Bohai acquired Cronos, another container lessor, in 2015 for $615 million, merging it into Seaco.
'Seaco has remained largely absent from the recovery in new box leasing over the past 18 months, leading us to believe it would eventually be offloaded,' said Wells Fargo.
In a commentary, Wells Fargo Securities noted that there have been reports since January in the Chinese media that HNA is looking to sell Seaco, reportedly the fourth-largest container lessor in the world after Triton International, the Florens subsidiary of Cosco Shipping Development and Textainer.
Reports of the possible sale of Seaco have received new publicity after a report by Bloomberg that HNA has hired an adviser for a possible divestiture of Seaco from HNA's Bohai Capital Holding,
'Surveying the competitive landscape for potential buyers, we think the target audience includes financial buyers or strategic operators,' wrote Michael Webber of Wells Fargo.
Those strategic buyers would include Triton, Textainer and CAI International. Wells Fargo said that HNA and Bravia Capital acquired Seaco from General Electric in 2011 for $1.05 billion and that Bohai acquired Cronos, another container lessor, in 2015 for $615 million, merging it into Seaco.
'Seaco has remained largely absent from the recovery in new box leasing over the past 18 months, leading us to believe it would eventually be offloaded,' said Wells Fargo.