HNA acquisition of gategroup due to close end of Q3/early Q4

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“This transaction is a great next step for all of gategroup, our people and our customers. gategroup will flourish as we accelerate our Gateway 2020 strategy and further expand our global reach with HNA’s strong presence in the rapidly growing Asian market.” – gategroup Chief Executive Officer Xavier Rossinyol

CHINA/SWITZERLAND. HNA (Hong Kong) Air Catering Holding Co reaffirmed today that it expects to close the purchase of Swiss airline catering-to-retail company gategroup at the end of the third quarter or the beginning of the fourth.

As reported in April, the HNA subsidiary swooped for gategroup in a deal valued at US$1.5 billion. Chinese authorities approved the move in May.

Up to the expiration of the additional acceptance period on 21 July, a total of 25,531,886 gategroup shares have been tendered into the offer, corresponding to 95.32% of all the listed shares that form the offer.

HNA said: “We are pleased about this final result. HNA is committed to expanding in the aviation industry through strategic investments in companies with strong market positions and excellent management teams. The acquisition of gategroup not only enriches our investment portfolio in airline catering, but also complements HNA’s existing activities including aviation, airport management, logistics and tourism. And we look forward to welcoming gategroup’s customers and employees into the partnership with HNA.”

Xavier Rossinyol, Chief Executive Officer of gategroup, said: “This transaction is a great next step for all of gategroup, our people and our customers. gategroup will flourish as we accelerate our Gateway 2020 strategy and further expand our global reach with HNA’s strong presence in the rapidly growing Asian market. In our common future, gategroup will continue to deliver innovative solutions and the highest industry standards as an independently managed company under HNA’s strategic guidance.”

After the settlement of the offer, HNA intends to submit an application to SIX (Switzerland’s leading stock exchange) for the de-listing of the gategroup shares and for an exemption from certain disclosure and publicity obligations in accordance with the exchange’s listing rules. HNA will request a squeeze-out or squeeze-out merger in line with chapter 5 of the offer prospectus.

HNA Group is a privately owned Fortune Global 500 Corporation headquartered in Haikou, Hainan Island, China with operations in the aviation sector, infrastructure and real estate, financial services, tourism (including duty free retailing) and logistics. It controls Haikou Meilan Airport Duty Free Shop, which offers highly successful offshore duty free shopping to Chinese travellers at Haikou Meilan International Airport on Hainan Island.

HNA’s dedicated tourism business arm, HNA Tourism Group, was named the World’s Leading Integrated Tourism Group at the World Travel Awards last December, the first Chinese company to receive the accolade. HNA Group has become a leading player in the emergence of Hainan Island, China as a tourism destination and is closely involved in the island’s fast-growing duty free industry.

gategroup claims to be the leading independent global provider of products, services and solutions related to the onboard passenger experience. It specialises in catering and hospitality, provisioning and logistics; plus onboard products and services to companies that serve people on the move. Its divisions include Gate Retail Onboard, airport lounge specialist gategourmet and Gate Gourmet.

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