China firm declares success in $1.5 bn Swiss offer

Chinese conglomerate HNA on Thursday declared Thursday its $1.5 billion offer for a Swiss airline catering company had been successful, after it lowered the minimum acceptance level for the deal to go through.

HNA Group — best known as the parent of Hainan Airlines — bid 53 Swiss francs per share for Zurich-based gategroup in April, a more than 20 percent premium to its share price before the offer.

It set a minimum threshold of 67 percent of the shares, but only 63.6 percent accepted by the July 1 deadline.

In a joint statement with gategroup on its website, HNA said it was waiving the 67 percent threshold because it was “pleased” with the results and “it remains confident that more shareholders of gategroup will recognise the benefits of accepting the offer”.

As such, it added, “the offeror declares the offer successful”.

The move means that, barring an unexpected events, HNA will end up with at least a majority shareholding in gategroup.

HNA earlier said it intends to delist the company but pledged to retain its current management and keep it headquartered in Switzerland.

The Swiss firm’s management has endorsed the offer.

Shareholders have been given more time to accept the deal, which is now expected to complete in the fourth quarter of this year, rather than mid-July as previously said.

The deal is one of a series of giant Chinese acquisitions overseas, including another by HNA, which said in February it would pay $6.0 billion for US tech firm Ingram Micro.

azk/slb/dan