HNA Group to be broken into four independent units as Chinese conglomerate’s restructuring enters final stretch
- HNA will be split into four independently run businesses: aviation, airport, financial and commercial
- Shares of HNA’s Hong Kong-listed unit get a boost from restructuring news
The development pushed the share price of its listed unit higher in Hong Kong.
“As the bankruptcy reorganisation has entered the final stage, we will do our best to ensure that risks are resolved in a steady and orderly manner,” said Gu Gang, executive chairman and the head of the working committee responsible for untangling the group’s estimated 500 billion yuan (US$77.3 billion) of debts.
He added that if the bankruptcy reorganisation is successfully completed, HNA will be split into four completely independent sectors: aviation, airport, financial and commercial.
The Chinese conglomerate’s Hong Kong-listed unit HNA Technology Investments Holdings closed 5.48 per cent higher at HK$0.77 on Monday. Its other mainland-listed subsidiaries such as Hainan Airlines rose 4.81 per cent on Friday, before the meeting on Saturday. The Shanghai and Shenzhen stock exchanges are closed on Monday and Tuesday on account of the Mid-Autumn Festival holidays.
Haikou-based HNA Group was built on the foundations of Hainan Airlines in 1993 by Chen Feng, who worked for the civil aviation authority before striking out on his own. With a handful of aircraft, Hainan Airlines quickly built a business flying holiday makers and Russian tourists from China’s frigid north to the country’s sole tropical island, long regarded as “China’s Hawaii” for its beaches, azure waters and holiday resorts.
