GENEVA: Chinese conglomerate HNA agreed to buy the Swiss airline catering company gategroup yesterday for 1.4 billion Swiss francs (US$1.5 billion), in the latest major Chinese overseas acquisition.
Gategroup’s management endorsed the offer, which will see HNA pay 53 Swiss francs per share in a deal that could be finalized in mid-July if approved by 67 percent of gategroup’s shareholders.
HNA is led by Chinese billionaire Chen Feng, an increasingly aggressive tycoon whose company has scooped up a string of aviation assets in recent years as it tries to capitalize on Asia’s blossoming air travel business.
HNA — best known as a parent of Hainan Airlines — bought airport servicing firm Swissport for 2.73 billion Swiss francs last July. The price per share offer marks a premium of more than 20 percent to Zurich-based gategroup’s closing price on Friday.
Gategroup Chairman Andreas Schmid said HNA’s offer “reflects the fair and adequate value and quality built by gategroup.
“It makes strategic sense that our company will become part of HNA”, with the deal helping gategroup to expand “significantly” in Asia, Schmid added in a statement.
HNA pledged to retain gategroup’s current management and keep it headquartered in Switzerland.
The deal would be the latest giant Chinese acquisition abroad.
State-owned China National Chemical Corp (ChemChina) in February offered US$43 billion for another Swiss company, pesticide and seed giant Syngenta, which will be the biggest-ever overseas acquisition by a Chinese firm if completed.
HNA in February said it would pay US$6 billion for US tech firm Ingram Micro, which distributes products for Apple and Microsoft.
More recently, insurer Anbang proposed US$6.5 billion to acquire luxury properties from US investment fund Blackstone, although it and its partners dropped a US$14 billion takeover offer for Starwood Hotels and Resorts.
China has encouraged its domestic firms to look overseas for deals that improve their balance sheets and strengthen their operations, as the economy slows at home.
