A subsidiary of financially troubled HNA Group is selling its holdings in a Shanghai-listed oil and gas distributer, continuing to unload assets to shrink the conglomerate’s debt overhang.
HNA Modern Logistics Co. Ltd. signed an agreement Sept. 30 to sell 100% of Zhejiang Haiyue Technology Co. Ltd. to Tongchuan Huineng Xinneng Energy Co. Ltd., a state-controlled company based in western Shaanxi province.
Haiyue Technology owns a 19% stake in Shanghai-listed HY Energy Group Co. Ltd., formerly known as Zhejiang Haiyue Energy Co. Ltd.
A transaction price wasn’t disclosed in HY Energy’s statement Monday. The Shanghai Stock Exchange sent an enquiry letter to HY, requesting additional information on the deal and asking whether the buyer plans to inject capital to the publicly listed company.
HNA paid 2.65 billion yuan ($371 million) in 2017 for the controlling stake in HY. In the first half of 2019, HY reported revenue of 6.87 billion yuan, down 33% from a year earlier, but its net profit increased 76% year-over-year to 413 million yuan.
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