HNA to offload its US$1.4 billion stake in Hilton spin-off as it rushes to raise cash and slash debt
Conglomerate continues to look for ways of paying down debt as Chinese authorities cast spotlight on overseas investment and acquisition sprees by domestic corporate heavyweights
HNA Group, ladened with huge debt and already firmly under China’s regulatory spotlight, plans to sell its 25 per cent stake in the real-estate business spin-off of Hilton Worldwide Holdings – Park Hotels and Resorts Inc – as it rushes to pay down its excessive borrowing.
But some fund managers say the process to offload its assets is already appearing “confused”.
The Chinese conglomerate, which has spent more than US$40 billion in the past three years amid
a high-profile international acquisition spree, is already planning huge job cuts and accelerating the sale of overseas assets, as the Chinese authorities crack down on companies’ offshore investments, particularly in real estate, hotels, and movie studios.
HNA is “pursuing a sale of some or all of the ordinary shares” it currently holds in Park Hotels and Resorts, according to a filing by the Virginia-based company on Friday.