China’s HNA Group to Acquire Swiss Airline Catering Firm ‘Gategroup’
Girish Shetti | | Apr 12, 2016 01:55 PM EDT |
(Photo : Getty Images) China’s HNA Group is preparing to purchase Switzerland's 'Gategroup.'
China's Conglomerate HNA Group is set to acquire Gategroup, a Swiss-based airline catering firm, for $1.5 bn.
The agreement is an all equity deal. HNA Group will offer $55 per share to the Swiss firm.
The deal reportedly has the backing of Gategroup's Board of Directors and is expected to be completed by July, according to people familiar with the matter. However, the agreement will be subjected to the approval of Switzerland's stock market regulator.
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"The offer reflects the fair and adequate value and quality built by Gategroup. It makes strategic sense that our company will become part of HNA, one of the leading providers of airport and aviation services worldwide," said Gategroup chairman Andreas Schmind.
According to sources, Gategroup will become part of Hainan Airlines, an airline company owned by HNA Group. Hainan Airlines is China's largest private airline operator and fourth largest in all in the country. The other three top airline companies - Air China, China Eastern and China Southern - are all state controlled companies.
HNA Group has a special interest in the aviation industry as it owns several other airline companies like Hong Kong Airlines, Lucky Air, and China West Air.
In order to consolidate its business in the aviation industry, the group has acquired several companies in aviation sector over the last one year. This includes Irish aircraft leasing firm Avolon Holdings and Swissport Group from PAI Partners SAS.
The company has spent more than $6 bn in an acquisition spree over the past year. HNA Group is one of several Chinese companies that has been on an acquisition spree to scoop up renowned western firms.
TagsHNA Group, Hainan Airlines, china
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