OREANDA-NEWS. HNA Group Co., Ltd. ("HNA", private) and gategroup Holding AG ("gategroup", SIX: GATE) jointly announced today that the two companies have entered into a definitive transaction agreement pursuant to which HNA will launch an all cash public tender offer for all publicly held registered shares of gategroup at a price of CHF 53 per share. On a fully diluted basis, the offer price values gategroup at an equity value of approximately CHF1.4 billion.

HNA is a privately owned Fortune Global 500 Corporation headquartered in Haikou with operations in the aviation sector, infrastructure and real estate, financial services, tourism and logistics. HNA has a strong track record in investing in international companies around the globe. The addition of gategroup fits perfectly with HNA's existing services portfolio and is a key building block in its strategy to accelerate the global expansion by establishing an increased presence in aviation related industries and services sectors. Adam Tan, Vice Chairman and Chief Executive Officer of HNA, 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 is committed to retaining gategroup's headquarters in Switzerland and supporting gategroup's Gateway 2020 strategy as a responsible industrial owner with a long-term investment horizon.

The Board of Directors of gategroup has unanimously resolved to support the public tender offer by HNA and to recommend the acceptance of HNA's public tender offer to gategroup's shareholders. The Board of Directors noted that a combination with HNA has significant strategic, operational and financial advantages for gategroup. Andreas Schmid, Chairman of the Board of Directors of gategroup comments: "The offer reflects the fair and adequate value and quality built by gategroup. It makes strategic sense that our company will become part of HNA, one of the leading providers of airport and aviation services worldwide. HNA has extensive expertise in the aviation industry, and its strong footprint in Asia will help gategroup to expand significantly in this fast growing region, where gategroup has strategic headroom."

Building upon its successful track record, HNA 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. Xavier Rossinyol, Chief Executive Officer of gategroup, added: “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 HNA

HNA, a Fortune 500 Company and a leader in aviation and tourism, was founded in 1993. Over the past two decades, it has grown from a local aviation transportation operator into a multinational conglomerate encompassing aviation, airport management, financial services, real estate, retail, tourism, and logistics. In 2015, HNA had revenues of RMB190 billion (CHF28.5 billion), total assets of RMB600 billion (CHF90 billion) and employed more than 180,000 employees worldwide. As of December 2015, HNA has a fleet of over 820 aircrafts, serves nearly 700 domestic and international routes, flies to over 200 cities, and has served 77.4 million passengers annually. It operates and manages, among others, Hainan Airlines, Tianjin Airlines, Deer Jet, Lucky Air, Capital Airlines, West Air, Fuzhou Airlines, Urumqi Air, Beibu Gulf Airlines, Yangtze River Airlines, Guilin Airlines, My CARGO, Africa World Airlines, and Aigle Azur. 

About gategroup

gategroup is the leading independent global provider of products, services and solutions relating to a passenger’s onboard experience. It specializes in catering and hospitality; provisioning and logistics; and onboard products and services to companies that serve people on the move. In 2015, gategroup achieved a total revenue of CHF3.0 billion and an adjusted EBITDA of CHF169.4 million. The company currently employs more than 28,000 people worldwide.