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HNA explores sale of newly acquired CWT logistics unit - sources

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By Reuters
HNA explores sale of newly acquired CWT logistics unit - sources
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   -   Copyright  Jason Lee(Reuters)

HONGKONG (Reuters) – China’s HNA Group is in talks with banks to find a buyer for its CWT logistics firm just nine months after acquiring the Singaporean company in a $1 billion deal, six people familiar with the matter told Reuters.

The sale, if completed, would be the latest in a series of divestments aimed at slashing debt at the aviation-to-financial services conglomerate that is restructuring its far-flung operations.

The asset divestment drive follows HNA’s $50 billion (£38 billion) worth of deal-making over the past few years, including hotels in the United States and a stake in Deutsche Bank <DBKGn.DE>, that has sparked intense scrutiny.

For CWT, HNA is targeting a non-Chinese buyer, three of the people said. Another person familiar with the matter said only a part of CWT would be put up for sale.

The sources declined to be named as HNA’s talks with investment banks on finding a buyer were confidential.

A spokeswoman for HNA, which completed its $1.04 billion acquisition of CWT in December last year via a wholly owned subsidiary, declined to comment.

(Reporting by Kane Wu, Julie Zhu, Sumeet Chatterjee in Hong Kong, and Anshuman Daga in Singapore Editing by Himani Sarkar)