Shanghai: Chinese conglomerate HNA Group Co. has agreed to buy a 25 per cent stake in Old Mutual Plc’s US asset management unit for about $446 million (Dh1.6 billion), adding to a spending spree that has totalled $30 billion since the start of last year.
London-based Old Mutual said in an emailed statement Sunday it will sell down its holdings in OM Asset Management to HNA Group in two tranches. The first — comprising 9.95 per cent at $15.30 per share — will be completed within 30 days.
The second — a 15 per cent stake at $15.75 per share — will take place in the second half of this year. After the transactions, Old Mutual’s holding of OM Asset Management will drop to about 26 per cent from the current 50.8 per cent, it said. The deal was first reported by the Financial Times on Saturday.
HNA Group didn’t respond to calls or emails seeking comment outside of Asian office hours.
The Hainan-based conglomerate has been investing in financial services as it seeks to broaden its portfolio beyond tourism and aviation. In the first quarter, it bought a $200 million stake in SkyBridge Capital, agreed to acquire assets from Australia & New Zealand Banking Group Ltd, and became one of the largest shareholders in Deutsche Bank AG.
The company controlled by billionaire Chen Feng last year bought stakes in hotel operator Hilton Worldwide Holdings Inc and electronics distributor Ingram Micro Inc.
HNA Group is leading a deal to acquire Manhattan’s 245 Park Avenue for $2.21 billion, one of the highest prices paid for a New York skyscraper, two people with knowledge of the negotiations said last week.
