HNA Expand Its Reach into the International Market

HNA Infrastructure Co Ltd， a subsidiary of HNA Group， a global Fortune 500 company focused on tourism， logistics and financial services， has become an active investor in the international market.

HNA Finalizes Purchase of Money-Losing German Airport

HNA Group has acquired 82.5% of Frankfurt-Hahn Airport in Germany， a former military airport now home to seven airlines.

HNA Group， one of Chinas most active overseas buyers， has finalized its purchase of a money-losing airport near Frankfurt， Germany， bolstering itself as a global airport owner and operator.

HNA paid a modest 15.1 million euros （$17.7 million） for 82.5% of Frankfurt-Hahn Airport， picking up control of the former military airport from the Rhineland-Palatinate Ministerial Council， the Chinese company said. The government said in September it planned to sell the airport， and it announced a deal with HNA in March.

The pair had initially aimed to close the deal by the end of June， but missed that deadline while they were receiving all of the necessary approvals and met other closing conditions.

Located 125 kilometers （78 miles） from Frankfurt， the airport is home to seven airlines. The only passenger carrier among those is low-cost carrier Ryanair， while all the rest are cargo specialists. The airport is attractive to the latter group because it is permitted to operate 24 hours a day.

The purchase is the latest in a string of similar deals for HNA， a financial holding company based on south Chinas tourist-friendly Hainan Island and whose earliest assets include Hainan Airlines， one of the nations first privately owned carriers. Those roots have led HNA to count travel and tourism as two of its main focus areas in a major global buying spree over the last decade.

In July， the groups Hainan HNA Infrastructure Investment Group Co. Ltd. agreed to pay $16 million for a stake that was equivalent to 30% of Rio de Janeiro International Airport. The group is also bidding for 25-year operating rights for Nikola Tesla Airport， the largest airport in Serbia.

HNA also operates 13 airports in its home China market， including two in its home Hainan province and a number of others in smaller cities.

The company and several other big Chinese overseas acquirers have come under scrutiny lately amid reports that Beijing is cracking down on such overseas buying as part of a broader campaign to ease the outflow of funds from China.endprint

HNA aim to get Majority Stake in Brazilian Airport

HNA Infrastructure Co Ltd， a subsidiary of HNA Group， a global Fortune 500 company focused on tourism， logistics and financial services， has signed an agreement to acquire a 60 percent stake in Rio de Janeiro Aeroportos SA， the controlling shareholder of Aeroporto International Antonio Carlos Jobim-Galeao （ GIG Airport ） from Odebrecht SA.

HNA Infrastructure will acquire the equity stake for approximately 60.1 million reais （ $18 million ） and will pay an additional 1.01 billion reais to GIG Airport in concession fees， for a total deal value of around 1.07 billion reais， according to Guanghui Ma， CIO of HNA Infrastructure.

Ma said HNA Infrastructure has agreed to sell 9 percent of its stake in RJA for 9 million reais to Changi Airports International， with HNA Infrastructure and CAI holding 51 percent and 49 percent stakes in RJA， respectively.

“GIG Airport is the largest international airport in Rio de Janeiro and provides significant access to the Brazilian and Latin American region， with strong potential for future development and growth. The transaction， which marks HNA Infrastructures first strategic project in Latin America， is expected to significantly enhance HNA Infrastructures footprint and resources overseas， especially in Latin America，” said Ma.

He noted that GIG Airport provides unparalleled opportunities for HNA Infrastructure to expand its reach into Latin America and provides added resources to fuel the key airports growth and development.

“We are pleased to partner with CAI， which is well-known for its exten-sive experience in global airport management and for its leadership in service and safety standards， and look forward to bolstering Rio de Janeiros infrastructure，” Ma said.

“The investment is a reflection of HNA Group and HNA Infrastructures commitment to furthering the Belt and Road Initiative in order to strengthen the cooperation between China and Latin American countries， particularly on development and infrastructure projects，” said Li Renjun， a professor of industrial economy at Hainan University.

The transaction is subject to regulatory approval in China and Brazil and is expected to be completed in the fourth quarter， according to company sources.

China recently surpassed the European Union to become Brazils largest export market. China is now a leading foreign investor in Brazil.

Hilton Says ‘Business as Usual With China Partners HNAendprint

Hilton Worldwide Holdings Inc. CEO Christopher Nassetta said his companys dealings with HNA Group is “business as usual” although the Chinese government is closely scrutinizing the countrys offshore deals.

HNA made headlines last year when it purchased a quarter of Hiltons shares in a deal valued at about $6.5 billion.

HNA has named tourism and leisure as one of its key investment focuses， but hasnt disclosed specific plans for the Hilton stake. Hilton CEO Christopher Nassetta said that stake is now worth $7.5 billion， split between$4.5 billion equity interest and $3 billion in margin buying.

Some investors have become concerned about the HNA investment after recent reports indicated Beijing was scrutinizing such offshore deals and even cutting off financing for some from domestic banks. Hiltons shares rose by as much as 47% in the months after the HNA investment was announced in October， but have recently given back some of that and are now ahead by about 32%.

Nassetta said that despite reports of greater scrutiny from Beijing， Hilton hasnt noticed any major changes in its relationship with either company， including the pending addition of HNA designees to Hiltons board.

“And what happens with them？ Ultimately， obviously， I dont know， but it appears to us sort of business as usual. And so I dont think that theres any- thing much more to say about that，” he said on a conference call to discuss the companys latest quarterly results， which included a 32% profit decline compared with what it reported a year earlier.

He added that the HNA deal closed in March this year and has a two-year lockup period， meaning that the Chinese investor is required to maintain the position for another 20 months.

His comments came a day after HNA scrapped another major U.S. deal to invest up to $416 million in satellite communications services firm Global Eagle Entertainment. In that instance， HNA cited failure to get clearance from the U.S. national security regulator by a deadline set by the two sides.

“And it will probably be， honestly， three years of work when that starts to get it up and operating，” he said， according to a transcript of the call. “So as far as we know， they are moving forward. In every conversation that weve had with them， they have suggested that to be the case. So time will tell.”endprint