China’s embattled HNA Group is continuing its asset divestment drive and reportedly is in talks with banks to find a buyer for its CWT logistics unit, nine months after it acquired the Singaporean business in a US$1 billion deal, a Reuters report said.
The sale, if completed, would be the latest in a series of divestments aimed at slashing debt at the aviation-to-financial services conglomerate. HNA has attracted much scrutiny for its US$50
billion worth of deals in recent years that included hotels in the US and a stake in Deutsche Bank.
For CWT, HNA is targeting a non-Chinese buyer, three sources told Reuters. Another person said only a part of CWT would be put up for sale. The sources declined to be named as HNA’s talks with investment banks for a buyer were confidential.
An HNA spokeswoman declined to comment.
The group completed the acquisition of Singapore-based CWT in December last year via a wholly owned subsidiary - HNA Belt and Road Investments Singapore.
The CWT business, spread across 90 countries, was folded into one of HNA’s listed units in Hong Kong that was renamed CWT International Ltd, the Reuters report noted.
The sales list is getting longer day by day
Recent asset sales by HNA, which regards Hainan Airlines and related carriers as its core business, include holdings in companies such as Hilton Worldwide Holdings Inc, Park Hotels & Resorts and Spain’s NH Hotels (NHH.MC).
As earlier reported, in August, Japan’s Orix Corp struck a US$2.2 billion deal to buy a 30% stake in HNA’s aircraft leasing business Avolon Holdings, the world’s No. 3 lessor. HNA has also indicated it is also open to sell its stakes in Deutsche Bank, Virgin Australia Holdings, ground handling firm Swissport and shipping container leasing company SeaCo.
Nol van Fenema