HNA Group of China to acquire gategroup in US$1.5 billion valuation cash deal

gategroup CEO Xavier Rossinyol: “Beyond our shareholders, this transaction is a great next step for all gategroup employees. A strong shareholder will give stability and continuity to the group’s new strategy.”

INTERNATIONAL. In big breaking news today, HNA Group Co of China and gategroup Holding jointly announced that the two companies have entered into a definitive transaction agreement whereby HNA will launch an all cash tender offer for publicly held registered shares of gategroup at CHF53 per share (US$55.60).

On a fully diluted basis, the offer price values Swiss aviation and travel services giant gategroup at approximately CHF1.4 billion (US$1.47 billion).

The gategroup Board of Directors has unanimously resolved to support the public tender offer and to recommend its acceptance to shareholders.

The public offer is subject to a minimum acceptance condition of 67 % and the approval of all regulatory and merger control authorities and other customary closing conditions.

The deal represents another major consolidation in the aviation services industry. Both companies’ interests include highly successful travel retail activities. As reported, gategroup* recently acquired Scandinavian travel retailer Inflight Service Group, boosting the Swiss company’s already strong presence in the inflight and wider travel retail and onboard sectors.

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.

HNA Vice Chairman and Chief Executive Officer Adam Tan said: “We are excited of welcoming gategroup to the HNA family and look forward to jointly embarking on the next stage of gategroup’s development.

“Our offer delivers an attractive proposal for all of gategroup’s stakeholders, providing shareholders with an attractive premium in cash, offering management and employees good career opportunities in one of the world’s largest aviation groups and underpinning gategroup’s long-term development with a responsible industrial ownership structure.”

Upon completion of the public tender offer, HNA intends to delist gategroup from the SIX Swiss Exchange and operate the company as an autonomous portfolio company within the HNA group. HNA said it is committed to retaining gategroup’s headquarters in Switzerland and supporting the latter’s Gateway 2020 strategy as a responsible industrial owner with a long-term investment horizon.

By building upon its successful track record, HNA said it will provide gategroup with relevant industrial expertise as owner and business partner, not only based on its experience in airline, airline-related and, in particular, airline catering businesses but also given its emerging market heritage and pan-Asian footprint and company network.

gategroup Chief Executive Officer Xavier Rossinyol commented “Beyond our shareholders, this transaction is a great next step for all gategroup employees. A strong shareholder will give stability and continuity to the group’s new strategy.

“Also for our customers, partners and suppliers, the strength of HNA in the key areas of the industry and especially in Asia will help gategroup to further strengthen our global network, while keeping the highest industry standards. We will remain independently managed and headquartered in Switzerland.”

ABOUT GATEGROUP: 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.

ABOUT HNA Group: Since its foundation in 1993, HNA Group has grown from a traditional aviation company to a major tourism-centric conglomerate operating “from Hainan Island to the globe”. Its core divisions are aviation, holdings, capital, tourism and logistics. It has assets valued at over RMB600 billion and 11 listed companies. In 2015, HNA Group generated revenues of nearly RMB190 billion and has nearly 180,000 employees worldwide. 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.

(Above and below) Through subsidiary activities HNA Group controls Haikou Meilan Airport Duty Free Shop, which offers hugely successful offshore duty free shopping to Chinese travellers at Haikou Meilan International Airport on Hainan Island
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