Caixin
Feb 23, 2017 04:52 AM
M&A

HNA Buys Controlling Stake in Oil and Gas Distributer Haiyue

(Beijing) — Chinese conglomerate HNA Group continued its shopping spree by acquiring a controlling position in a publicly traded oil and gas distributor, adding to a portfolio sprawling from aviation to logistics to financial services.

Through its logistics unit, HNA paid 2.65 billion yuan ($385.09 million) for control of Zhejiang Haiyue Co., a Shanghai-listed distributor of refined oil products and liquefied gas, Zhejiang Haiyue said Wednesday in a statement.

Zhejiang Haiyue is the third listed company on the mainland or in Hong Kong in which HNA has taken a controlling stake so far this year. The two others were Hong Kong-based Advanced Card Systems Holdings Ltd., a supplier of smart-card readers, and Northeast Electric Development Co., a power transmission equipment maker.

As of Wednesday, Haiyue had a market value of 6.9 billion yuan. Its stock has been suspended from trading since Feb. 8. Haiyue, which operates gas stations and invests in infrastructure development, reported a net loss of 205 million yuan for 2015.

After completion of the deal, Haiyue would be 22.3% owned by HNA’s newly formed logistics unit, which combines HNA‘s logistics and technology assets. Haiyue said in the announcement that the ownership change might alter the company’s future growth strategy.

HNA has been on a global acquisition spree in recent years and announced or completed $30 billion of deals in 2016. The group has traditionally focused on the travel and tourism sector closely associated with its base in southern China’s Hainan province.

Last week, HNA acquired 3% of leading German lender Deutsche Bank AG, shortly after its purchase of UDC Finance Ltd., the New Zealand asset finance arm of Australia’s Australia & New Zealand Banking Group Ltd. (ANZ), and U.S. hedge fund SkyBridge Capital in January.

Contact reporter Han Wei (weihan@caixin.com)

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