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Outbound Chinese investment news
August 30th 2019
Ctrip, Fosun and HNA. Read More »
China’s outbound aviation and travel investments are in the news. India has given anti-competition approval to Chinese online travel agency (OTA) Ctrip to buy Indian OTA MakeMyTrip, a deal first announced in April. Ctrip will own 49% of MakeMyTrip, valued at US$2.5 billion.
MakeMyTrip, in the three months to 30 June, reduced its losses by $3.6 million to $29.2 million. Booking revenue has increased by 24%, to $1.7 billion.
Fosun Tourism Group will acquire 75% of the Thomas Cook Group’s tour business and 25% of the airline units. Fosun already was the single largest shareholder in the European travel company.
Fosun will inject another $546 million into the group, but other investors are not following suit at the same rate as Fosun so their shares will be diluted.
Small French airline Aigle Azur 49% owned by HNA, has big problems. A French court has appointed a temporary administrator to the airline after a minority shareholder once friendly with HNA fired the CEO and three executives on Monday.
Lu Azur, owned by Gérard Houa, has 19% equity in the airline. Houa is described as an agent for HNA in France, effectively giving HNA majority ownership and control. Houa dismissed management and installed himself as president and former Air Senegal executive, Philippe Bohn, as general manager.
The remaining 32% of Aigle Azur is held by David Neeleman, who opposed the changes as unlawful and is threatening legal action. Neeleman said HNA also disapproved of the changes.
HNA has become a “ghost investor” in Aigle Azur, according to media reports, coinciding with the conglomerate ceasing investments and looking to offload assets. The contested management said shareholders “abandoned” the airline in August when it needed more capital after a business downturn.
