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.
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.