China’s Biggest Deal Maker Spent Billions. Now the Bill Comes Due.
- 6 years ago
China’s Biggest Deal Maker Spent Billions. Now the Bill Comes Due.
That company, called HNA Group, in a few short years had racked up $50 billion in big purchases as
well as investments in global companies like Hilton Hotels, Deutsche Bank and Virgin Australia.
Chen Feng, HNA’s founder, said it signaled “our progress in bringing the world closer together through deepened U. S. market ties.”
But even as Mr. Chen accepted the award, the deals that helped the company achieve its global reach are coming back to haunt it.
It owns 26 percent of Hilton Hotels, the American hospitality chain; a 19.8 percent stake in Virgin Australia, the airline;
and a 20.9 percent stake in Dufry, the Swiss airport retailer.
Sales by HNA this year could total $16 billion, by some estimates — more than the nearly $14 billion in deals it struck last year.
HNA has even announced plans to sell some of the assets it acquired when it bought
a 25 percent stake in Hilton Worldwide Hotels, according to a regulatory filing.
One week after Mr. Chen, HNA’s founder, received an award at the New York gala from Mr. Schwarzman,
it sold a Sydney office building for $160 million to Blackstone, Mr. Schwarzman’s firm.
It is moving quickly to sell assets, saying this week that it would sell a stake in a trust that owns Hilton hotel properties worth $1.4 billion.
In response to questions, Deutsche Bank cited a statement from HNA
that the Chinese company would not sell more of its stake of the bank and declined to comment further.
That company, called HNA Group, in a few short years had racked up $50 billion in big purchases as
well as investments in global companies like Hilton Hotels, Deutsche Bank and Virgin Australia.
Chen Feng, HNA’s founder, said it signaled “our progress in bringing the world closer together through deepened U. S. market ties.”
But even as Mr. Chen accepted the award, the deals that helped the company achieve its global reach are coming back to haunt it.
It owns 26 percent of Hilton Hotels, the American hospitality chain; a 19.8 percent stake in Virgin Australia, the airline;
and a 20.9 percent stake in Dufry, the Swiss airport retailer.
Sales by HNA this year could total $16 billion, by some estimates — more than the nearly $14 billion in deals it struck last year.
HNA has even announced plans to sell some of the assets it acquired when it bought
a 25 percent stake in Hilton Worldwide Hotels, according to a regulatory filing.
One week after Mr. Chen, HNA’s founder, received an award at the New York gala from Mr. Schwarzman,
it sold a Sydney office building for $160 million to Blackstone, Mr. Schwarzman’s firm.
It is moving quickly to sell assets, saying this week that it would sell a stake in a trust that owns Hilton hotel properties worth $1.4 billion.
In response to questions, Deutsche Bank cited a statement from HNA
that the Chinese company would not sell more of its stake of the bank and declined to comment further.