HNA buys stake in Old Mu­tual US unit

New Straits Times - - Business -

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

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