SINGAPORE (Reuters) - HNA-Caissa Travel Group 000796.SZ, a listed unit of troubled Chinese conglomerate HNA Group [HNAIRC.UL], said on Wednesday it has scrapped plans to acquire assets and its shares will resume trade after a six-month suspension.
It said it decided to halt its asset acquisition plans after considering changes in market conditions, adding that it will focus instead on its core business of tourism and travel catering.
In March, the tourism and travel catering firm said it planned to buy minority stakes in Hong Kong Express Airways, Ghana’s Africa World Airlines and several other companies, though details had not been determined.
“The company has decided to halt its major asset restructuring plans as current conditions are still not mature,” HNA-Caissa said in a filing to the Shenzhen stock exchange.
HNA-Caissa’s shares, which were suspended on Jan. 19, will resume on Thursday. The company had a market capitalization of about $1.6 billion before the suspension.
Parent HNA Group, an aviation-to-financial services conglomerate, has been beset by debt problems, with the unexpected death of its Co-Chairman Wang Jian earlier in July adding to its woes.
Reporting by Lee Chyen Yee in Singapore; Editing by Susan Fenton