HNA chairman Wang Jian’s death may accelerate firm’s sale of overseas assets, say analysts
Wang’s shares in the Chinese conglomerate likely to be reallocated, but main concern is the loss of a leader who set the firm’s business strategy
The sudden death of HNA Group’s co-founder and chairman Wang Jian has raised questions about the shareholding structure and investment strategies of the Chinese conglomerate.
Analysts say they expect the company to speed up its sales of assets to repay debts that were largely built up during an overseas shopping spree led by Wang.
Wang, who died after falling 15 metres onto rocks in France on July 3, held a 15 per cent stake in HNA, making him one of the largest shareholders in the Hainan-based company.
HNA, the parent of Hainan Airlines, is controlled by two charitable organisations – Hainan Cihang Charity Foundation and Hainan Province Cihang Foundation (known as the Cihang Foundation) – that together hold a 52.25 per cent stake, according to a statement released by the group in July last year.
The statement, addressed to the company’s employees, partners and customers, showed Wang and his co-founder and fellow chairman Chen Feng are the next-largest shareholders, each owning 15 per cent of HNA’s shares.