China’s HNA in talks to sell $2 billion of Avolon stake to Orix: Bloomberg

(Reuters) – China’s HNA Group Co Ltd [HNAIRC.UL] is in advanced talks to sell a minority stake in its aircraft-leasing business Avolon Holdings Ltd to Japan’s Orix Corp (8591.T) in a deal that could be worth more than $2 billion, Bloomberg reported on Tuesday.

FILE PHOTO: A HNA Group logo is seen on the building of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photo

Orix is looking to buy a 25 percent to 30 percent stake in Avolon, Bloomberg said, citing a source, adding that there were also other suitors for the Avolon stake.

The logo of Orix Corp is pictured in Tokyo, Japan April 7, 2015. REUTERS/Toru Hanai

Orix has its fully owned aircraft-leasing business called Orix Aviation, which is based in Dublin.

Avolon, which has its headquarters in Dublin, is owned by Bohai Capital (000415.SZ), which in turn is majority controlled by HNA Group.

HNA is keen that it gets full price for the stake sale, sources told Reuters earlier this month.

The Chinese aviation-to-financial services firm has been offloading assets and its stakes in companies such as Hilton Worldwide Holdings Inc (HLT.N), Park Hotels & Resorts (PK.N) and Spain’s NH Hotel Group SA (NHH.MC) as part of a wider reorganization.

A spokesman for Tokyo-based Orix declined to comment. HNA was not immediately available for comment. There was no immediate response from Avolon to Reuters queries sent outside office hours.

Reporting by Ishita Chigilli Palli in Bengaluru; Editing by Gopakumar Warrier

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