HNA execs buy stock in Avolon parent, with shares in Rezidor pledged
12/18/2017|11:29:12 AM|IndependentIE

As a result of market rumors concerning Rezidor's largest shareholder, HNA Tourism Group, and its rumored sale of a large number of Rezidor shares, Rezidor has received the following information from HNA Tourism Group, which Rezidor has decided to disclose in order to clarify the information about HNA Tourism Group's ownership.

"HNA Tourism Group currently owns 119,567,553 shares, corresponding to 70.4 per cent of the shares in Rezidor. HNA Tourism Group has entered into a loan agreement with a lender, under which 10,600,000 of HNA Tourism Group's shares in Rezidor have been pledged as security for the loan. Pursuant to the loan agreement, the pledged shares have been transferred to the lender's securities account. Under the loan agreement, the lender is not entitled to exercise the voting rights for the pledged Rezidor shares. The shares will be returned to HNA Tourism Group when the loan has been fully repaid.

HNA Tourism Group may enter into agreements with the lender, or any other party, which may involve pledging more Rezidor shares."

HNA co-chairmen Chen Feng and Wang Jian are planning to increase their stakes in Bohai Capital after the Shenzhen-listed leasing unit's stock reached 30pc less than its 2017 peak.

Twenty-four officials at HNA and its subsidiaries plan to buy 87 million yuan (€11.2m) of Bohai Capital shares from the market within three months, according to statements filed to the Shenzhen stock exchange on Wednesday. The purchases are meant to reflect confidence in the leasing unit, according to the statement.

Bohai's flagship assets are Avolon and Seaco - a container-leasing business.

Avolon recently sought to emphasise its financial independence from HNA.

Chief financial officer Andy Cronin said Avolon was unlikely to make further loans to its immediate parent and HNA unit, Bohai. He also highlighted other safeguards about Avolon's relationship with the debt-laden Chinese conglomerate when speaking at a Goldman Sachs aircraft-leasing conference, according to a note from the bank. "Avolon downplayed HNA's influence and stressed protections in place, which may calm some concerns temporarily," Goldman Sachs analysts wrote.

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