Debt-laden HNA pared back its stake in Germany's Deutsche Bank – the second time it has done so within a week. Will the Chinese conglomerate keep selling to pay down its debt pile?
Haikou-based HNA sold $375 million worth of Deutsche Bank stock, bringing its stake to 8.8 percent, according to media reports. The move represents the second time HNA has trimmed the stake, which forms part of a $40 billion spending spree in western firms in recent years.
HNA is finding unconventional ways including tapping employees to raise cash and meet obligations linked to its debt, which includes complex financial instruments. UBS lined up financing for part of the Chinese firm's spending binge, as finews.asia reported last year.
Keep Trimming?
HNA is believed to be grappling with more than $100 billion in debt overall. Will it sell more of its stake in Deutsche Bank, which totaled 9.9 percent before it began running it down? Maybe, according to a HNA spokesman. However, «HNA will continue to be a significant investor in Deutsche Bank.»
The Chinese investor's methods have raised eyebrows in Europe, where German finance regulator Bafin is reportedly investigating, as well as in Switzerland over an unrelated investment. Deutsche is unlikely to have been a success for HNA thus far: the stock has shed nearly one-quarter of their value since the Chinese firm emerged as a major investor.
