Domestic

HNA Group seeks backdoor listing for leasing arm

(Agencies)
Updated: 2010-07-14 14:26
Large Medium Small

HONG KONG: HNA Group, China's No 4 airline group, is seeking a backdoor listing in Hong Kong for its aircraft leasing arm by proposing a $722 million deal with Lung Cheong International Holdings.

Related readings:
HNA Group seeks backdoor listing for leasing arm Airline's wings clipped over canceled flight
HNA Group seeks backdoor listing for leasing arm Investment is taking off for airline center in Tongzhou
HNA Group seeks backdoor listing for leasing arm Capital Airlines to jet off next week
HNA Group seeks backdoor listing for leasing arm Meilan Airport to buy 54.5% stake in HNA Airport

Investment holding firm Lung Cheong said late on Tuesday it intended to buy HNA's aircraft leasing business for HK$6 billion, to be paid via 1.2 billion new shares and a HK$5.8 billion convertible bond issue.

The new shares will be issued at HK$0.2 each and the bonds can be converted into shares at the same price, representing a 57.9 percent discount to the stock's last close of HK$0.475 on Monday.

Lung Cheong shares fell as much as 16 percent after trading resumed on Wednesday and were down 13 percent at HK$0.415 at 0336 GMT.

HNA Group, with total assets of about 149.7 billion yuan ($22 billion) at the end of 2009, owns 13 full service airlines and six listed companies, including Hainan Airlines.