HNA To Buy Gategroup In USD$1.5 billion Deal

Chinese aviation and shipping conglomerate HNA Group stepped up its global expansion by agreeing an all-cash deal to buy Swiss airline catering firm Gategroup for USD$1.5 billion.

HNA, which was founded in 1993 and now operates more than a dozen airlines including its flagship Hainan Airlines, is offering CHF1.4 billion Swiss francs for all of Gategroup's outstanding shares. The price is a 17 percent premium to the catering firm's last traded price.

Gategroup's board has recommended the offer, the companies said in a joint statement. HNA plans to delist Gategroup from the Swiss stock exchange. Gategroup will remain headquartered in Switzerland under the leadership of the current management team.

This is the second deal that HNA has struck in Switzerland, after it acquired cargo handler Swissport International for CHF2.7 billion Swiss francs last year.

HNA Group has grown into one of China's biggest aviation, logistics and services conglomerates, controlling 11 companies listed on the mainland China and Hong Kong stock markets. It has interests spanning airlines and airports, aviation leasing, and hotels and tourism.