HNA buys stake in Old Mutual US unit
SHANGHAI: Chinese conglomerate HNA Group Co has agreed to buy a 25 per cent stake in Old Mutual Plc’s United States asset management unit for about US$446 million (RM1.9 billion), adding to a spending spree that has totalled US$30 billion since the start of last year.
London-based Old Mutual said yesterday it would sell down its holdings in OM Asset Management to HNA Group in two tranches.
The first – comprising 9.95 per cent at US$15.30 per share – will be completed within 30 days.
The second – a 15 per cent stake at US$15.75 per share will – take place in the second half of this year.
After the transactions, Old Mutual’s holding of OM Asset Management would drop to 26 per cent from 50.8 per cent, it said.
The deal was first reported by the Financial Times on Saturday.
The Hainan-based conglomerate has been investing in financial services as it seeks to broaden its portfolio beyond tourism and aviation.
In the first quarter, it bought a US$200 million stake in SkyBridge Capital, agreed to acquire assets from Australia & New Zealand Banking Group Ltd, and became one of the largest shareholders in Deutsche Bank AG.
The company controlled by billionaire Chen Feng last year bought stakes in hotel operator Hilton Worldwide Holdings Inc and electronics distributor Ingram Micro Inc. Bloomberg