HNA unit eyes in­flight-ser­vice firm

China Daily (USA) - - BUSINESS - By BLOOMBERG

A sub­sidiary of China’s ac­quis­i­tive HNA Group Co agreed to in­vest as much as $416 mil­lion in Global Ea­gle En­ter­tain­ment Inc, bol­ster­ing its in-flight en­ter­tain­ment and in­ter­net ser­vices in a busi­ness em­pire span­ning tourism, fi­nan­cial in­vest­ments and lo­gis­tics.

Bei­jing Shareco Tech­nolo­gies Co plans to ac­quire as muchas 34.9 per­cent in Global Ea­gle to be­come its big­gest share­holder, the Chi­nese com­pany said onWed­nes­day.

They also plan to set up a ven­ture to of­fer en­ter­tain­ment, con­nec­tiv­ity and pay­ment ser­vices to HNA air­lines, with Global Ea­gle hold­ing up to 49 per­cent, the Los Angeles-based com­pany said in a sep­a­rate state­ment.

The lat­est deal would add to at least $34 bil­lion of ac­qui­si­tions that bil­lion­aire Chen Feng’s HNA Group com­pa­nies have an­nounced in the past year, av­er­ag­ing more than two pur­chases a month, ac­cord­ing to data com­piled by Bloomberg.

Among re­cent trans­ac­tions, HNA agreed to buy about 25 per­cent of ho­tel op­er­a­tor Hil­ton World­wide Hold­ings Inc for $6.5 bil­lion and also CIT Group Inc’s $10 bil­lion plane-leas­ing busi­ness in Oc­to­ber.

Global Ea­gle will in­vest up to $150 mil­lion in the joint ven­ture that will pro­vide in-flight en­ter­tain­ment ser­vices to HNA’s air­lines, the Chi­nese com­pany said.

HNA Group op­er­ates al­most 320 air­planes, with air­lines in­clud­ing Hainan Air­lines Co, China’s fourth­largest car­rier, ac­cord­ing to its web­site.

The eq­uity in­vest­ment in Global Ea­gle and for­ma­tion of the joint ven­ture are ex­pected to be com­pleted in 2017, the US com­pany said.

PRO­VIDED TO CHINA DAILY

Crew mem­bers get off from a plane of Hainan Air­lines, a sub­sidiary of HNA Group Co, af­ter land­ing at Nan­sha Is­lands.

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