‘HNA gave false detail on Gategroup bid’
BEIJING: A Swiss regulator has ruled that HNA Group Co, the acquisitive Chinese conglomerate facing widening global scrutiny of its overseas purchases, provided some false information and failed to disclose that company executives held the biggest stake in its takeover of Zurich-based Gategroup Holding AG.
The Swiss Takeover Board found HNA provided incorrect shareholdings for the top two stakeholders — Bharat Bhise and Guan Jun — in the Gategroup offer prospectus last year. Bhise and Guan acted as trustees holding the shares for HNA co-chairmen Chen Feng and Wang Jian, chief executive Adam Tan and three other people, according to the board. The executives had failed to disclose their ownership in HNA, said the board in a newsletter published on Friday.
The regulator has asked Ernst & Young AG to look into whether the controlling group has complied with minimum price rules and best price regulations. It also will impose a fee of 50,000 Swiss francs (RM210,120) on HNA and its unit HNA Aviation (Hong Kong) Air Catering Holding Co for the proceeding.
A HNA spokesperson said the group cooperated fully with the Swiss board’s inquiry. According to a HNA Aviation release, the ruling does not affect the validity of the Gategroup takeover, which has been completed.
While the Hainan-based company released details of its shareholding structure in July, the group hasn’t disclosed who owns the charities that control HNA, or provided background details on Guan, about whom little is known.
Some Wall Street banks had shied away from HNA this year amid a lack of clarity on its sources of funding and ownership structure, said sources.