China's HNA Group considers future following co-founder's death

HAIKOU, China – China's HNA Group, HNA Group of China, HNA Group, has set up a joint venture between the two companies, but the company now faces a complicated future after the death of its co-founder and co-chairman. While on a business trip to Provence, France, Wang Jian fell in love with his death in this accident.

HNA Group's board and management team, led by co-founder and chairman Chen Feng and CEO Adam Tan , issued the following statement:

"HNA Group extends deepest condolences to Mr. Wang's family and many friends. Together, we have the exception of a leader and a role model, whose vision and values ​​will continue to be a reality for all who have the good fortune to know him. and philanthropy. "

Divestment

HNA built an empire worth an estimated $ 230 trillion in badets and taxes. Virgin Australia, France's Aigle Azur and TAP in Portugal.

But the company, like other Chinese conglomerates, came under pressure last year as it cracked down on the risky debt-fueled financing that enabled its expansion, tightening lending controls and reining in debt. In response, HNA was selling off some of its badets.

In April, HNA announced that it would be worth $ 6.5-billion stake in Hilton Worldwide Holdings and sold a $ 1-billion stake in the Hilton Grand Vacations timeshare

Last month, Asia's Minor International, a global conglomerate focused on restaurants, hospitality and lifestyle brands distribution, reached agreement with HNA to purchase an equity stake of 25.2 percent in Spain's NH Hotel Group in a transaction valued at € 619 million. As we reported, HNA's divestiture of its NH Hotels has been poised to calm down what was a conflagration after HNA acquired Carlson Rezidor Hotel Group, now Radisson Hotel Group, in 2016. It's a move that some shareholders saw a conflict of interest HNA, at the time, owned almost 30 percent of NH Hotels and Carlson was viewed as a direct competitor. Subsequently, London hedge fund Oceanwood Capital Management, which owned a 10-percent stake in the NH Hotel Group, called for the chairman of the NH Hotel Group to date HNA's buy of Carlson Rezidor. 19659012] What's Next for HNA?

Wang's death was seen to be successful in the offloading of its badets. "HNA Group," Corrine Png, CEO of Asian Transportation Equity Research Firm Crucial Perspective, told Bloomberg. "More importantly, it will also be HNA Group and related companies' restructuring plans back on the drawing board. Some of the recent restructuring plans have resulted in HNA Group, and ultimately Hainan Cihang Foundation, increasing control over the subsidiary and badociate companies, instead of decreasing control. "

Liu Feng, director of the Hainan Normal University Free Trade Port Research Center, told Bloomberg that the loss would bring" short-term shocks "to HNA's business development, especially to the group's ongoing business integration plan. "The long-term impact on the group will be limited. The key is to figure out what happened in France, before we can have a deeper badysis on the potential impact on HNA. "