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HNA Group announces Gategroup IPO
March 9th 2018
HNA Group needs money fast to appease creditors and service its burgeoning debt. Read More » The Haikou-headquartered conglomerate this week announced its intention to list a 65% stake in Swiss catering firm, Gategroup, by the end of this month on the Zurich Stock Exchange. The IPO is expected to fetch approximately US$375 million, which will not make much of a dent in the estimated US$20 billion debt the Group has maturing in the next 18 months. The conglomerate acquired Gategroup for US$1.9 billion in 2016.
There is increasing pressure on HNA to reassure investors of its financial soundness after it went on an estimated US$50 billion global investment spree in the last two years. The group also controls nine Chinese and two Hong Kong airlines: Hong Kong Airlines and HK Express in Hong Kong and Hainan Airlines, Air Chang’an, Beijing Capital Airlines, Fuzhou Airlines, Guangxi Beibu Gulf Airlines, Lucky Air, Urumqi Air and West Air.
