HNA Group faces headwinds after buying spree

China’s HNA Group, which has invested in several logistics assets, is facing headwinds following a spending spree that has left the company in debt and concerns over its ownership structure.
Bloomberg reports that the company has seen three deals in the last three months fail and its short-term debts have reached $28bn after it spent more than $40bn over the last three years.
Deals were blocked over concerns about the conglomerate’s ownership structure.
The company has several outstanding investments, including the purchase of a controlling stake in the owner of Rio de Janeiro’s largest airport, Aeroporto Internacional Antônio Carlos Jobim – Galeã (GIG Airport).
Its Swissport ground handler business also has yet to complete its purchase of Aerocare, the largest handler in Australia and New Zealand. Swissport, however, told Bloomberg the deal is due to close in January.
In the US, lawmakers are calling for greater oversight of HNA’s acquisitions in the country.
In response, the company, which is also affiliated with Suparna Airlines and several other logistics businesses, has said it will not default.
To meet the challenge, the group is planning to lend some of its shares in the Postal Savings Bank of China to investors as part of a financing deal to boost liquidity. It is also planning on selling some oversees properties.
In better news for the conglomerate, Austria has approved its acquisition of an asset manager.

Share this story

Related Topics

Latest business news

QCS and Team Global Logistic to expand reach with merger

Quick Cargo Service and Team Global Logistic will merge their businesses with the aim of expanding the reach of service….

Read More

Share this story

AfA calls on Biden to improve US airport cargo infrastructure

The US Airforwarders Association (AfA) has written to US president Joe Biden to ask for funding to be allocated for…

Read More

Share this story

ECS Group back on the acquisition trail

The ECS Group is back on the acquisition trail following a break in activity due to the Covid crisis. The…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.