Case – HNA HNA is keeping a fast pace of global acquisitions. Below are a few of
ID: 2617999 • Letter: C
Question
Case – HNA
HNA is keeping a fast pace of global acquisitions. Below are a few of the acquisitions they have pursued in the last two years.
a) from the acquisitions below, which ones makes the most sense for HNA? Why?
b) from the acquisitions below, which ones makes the least sense for HNA? Why?
c) more broadly, is expanding abroad the best choice for HNA? Why (or why not?)
8/1/15 - HNA Group to acquire Swissport for $2.8b
HNA Group Co Ltd has agreed to acquire the world's largest ground and air cargo services firm Swissport International Ltd from European private equity firm PAI Partners for about $2.8 billion, the Haikou, Hainan province-based conglomerate said on Friday.
9/3/15 - HNA has acquired the Reuters building in London
HNA Group, the parent company of China’s privately-owned Hainan Airlines, jumped into the London real estate market this week by purchasing a ten-story tower that is Reuters news agency’s European home. Though HNA did not disclose the acquisition amount, industry sources said that the building's former owner had asked for 215 million pounds ($331 million), when it was put up for sale in May.
2/18/16 - China's HNA Group to buy Ingram Micro for $6 billion
Chinese aviation and shipping conglomerate HNA Group is buying electronics distributor Ingram Micro Inc., for about $6 billion. Ingram, founded in 1979, is one of the largest distributors of personal computers and other technology products including printers, scanners, TVs, videogame consoles, video monitors and software. The Irvine, Calif., company recently branched into a range of higher-margin professional services. The offer of $38.90 per share represents a 31.2 percent premium to Ingram's closing price on Wednesday.
10/6/16 - Chinese Tycoon Expands Aviation Empire with $10 Billion Purchase
China’s HNA Group, controlled by billionaire Chen Feng, agreed to buy the aircraft-leasing business of CIT Group Inc. for $10 billion in a deal that would create the world’s third-largest rental fleet. 10/24/16 - China's HNA Group buys $6.5 billion stake in Hilton, extends hotels push China’s aviation and shipping giant HNA Group extended its push into hotels and Chinese tourism on Monday, paying $6.5 billion to buy a 25 percent stake in Hilton Worldwide Holdings Inc. from biggest shareholder Blackstone Group LP. The deal marking the second investment in the hotel industry this year by ambitious and fast-growing HNA. In April HNA bought Carlson Hotels Inc., owner of Radisson hotels, for an undisclosed sum.
1/21/17- China's HNA extends reach to NZ with $460 million purchase of non-bank lender UDC
HNA Group, one of China’s most acquisitive conglomerates, said it would extend its reach to New Zealand with the $460 million purchase of asset finance firm UDC. With a portfolio that ranges from car loans to equipment finance, UDC is New Zealand’s largest non-bank lender, with $NZ2.6 billion in gross loans in 2016, according to KPMG.
Explanation / Answer
HNA , is one of the biggest Chinese conglomerate formed in 2000 headquartered at Haikou, Hainan, China.They are involved in various industries including real estate, aviation, financial services, logistics,tourism and more.
Answer a) The most sensible acquisitions for the HNA is to buy Ingram Micro for $6 billion with the following reasons
Answer B) The least sensible acquisitions for the HNA is to buy non-bank lender UDC for $460 million with the following reasons
Answer C)
Expanding abroad is the best choice for HNA with the following reasons