HNA trimmed its stake in German lender Deutsche Bank – the third time it has done so this year. Will the Chinese conglomerate carry on selling to reduce its mountain of debt?
Haikou-based HNA has offloaded another chunk of its major stake in Deutsche Bank. The trimming comes after two initial public offerings which were to have bolstered HNA's cash pile were pulled at the last minute.
The latest move represents the third time the conglomerate has cashed in its stake, which forms part of a $40 billion spending spree in western firms in recent years. HNA sold $375 million worth of Deutsche stock, paring its stake to 8.8 percent in February.
HNA will now hold 7.9 percent following the latest reduction, after letting a complex arrangement of derivatives lapse. «Due to the current market environment we have decided not to renew a part of the financing structure for our stake in Deutsche Bank and have as a result slightly reduced our stake,» HNA told «Bloomberg».
Frankfurt Turmoil
The Chinese conglomerate pledged its commitment to remain a major Deutsche investor, but considering it has lowered it stake three times in several months, the question is what HNA considers to be a «major investor».
The move comes amid major turbulence in Frankfurt, where the bank sacked turnaround CEO John Cryan less than two weeks ago in favor of German banker Christian Sewing. Cryan has been reticent to meet with HNA, which has been aided in its debt-fueled buying spree by UBS, as finews.asia reported last year.
