March 12, 2018 / 9:58 AM / a year ago

Hainan Airlines to take over parent's stakes in airlines, hotel units

SHANGHAI, March 12 (Reuters) - Hainan Airlines will take over stakes owned by its parent HNA Group in two local airlines and five other aviation and tourism businesses as part of the conglomerate’s asset reorganisation, the company said.

HNA’s flagship carrier said in a statement to the Shanghai stock exchange on Saturday it would take controlling stakes in West Air, Guilin Airlines as well as maintenance, repair and overhaul service providers HNA Technic and SR Technics.

It will also take control of flight school Hainan Sky Plumage Flight Training, hotel investment and management platform HNA Hospitality Group and an unnamed overseas hotel operator. It did not give financial details of the transactions.

Hainan Airlines suspended trading in its shares on Jan. 10 and later said it was carrying out a “major asset restructuring”. In its latest statement it said the trading halt would continue until April 10 as it worked out the deals.

Aviation-to-financial services group HNA is in the midst of a drive to restructure operations while raising cash by selling equity and real estate assets after a $50-billion acquisition spree over the last two years.

HNA is considering a public listing of Gategroup, a Swiss airline caterer it bought in 2016, and plans to sell some or all of its 25 percent stake in U.S. hotel chain Park Hotels & Resorts. (Reporting by Brenda Goh Editing by Clarence Fernandez)

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