Temasek, RRJ to take 49% stake in HNA-owned Gategroup

The investors have subscribed to a five-year mandatory exchangeable bond which, upon conversion, will give them an up to 49% interest in Gategroup. Richard Ong, founder and chairman of RRJ, will join the company’s board of directors, according to a statement.

The deal comes after HNA reportedly abandoned plans to list Gategroup. HNA has been looking for ways to monetize assets since it was investigated by regulators last year over its high-profile offshore transactions. Fosun Group, Anbang Insurance Group, and Wanda Group also came in for scrutiny. The government seized control of Anbang earlier this year and prosecuted the company’s chairman.

HNA paid approximately $1.5 billion for Gategroup in 2016 during an acquisition spree that featured airlines, airports and related services, hotels and real estate, and financial services. The company provides catering, retail-on-board and hospitality services to more than 700 million passengers a year, operating out of 200 bases in 60 countries and territories. It has approximately 43,000 employees.

Revenue came to CHF4.55 billion ($4.58 billion) in 2017, up from CHF3.36 billion the previous year. Over the same period, net profit increased from CHF32.6 million to CHF85.2 million, while EBITDA rose 49.8% to CHF300.4 million.

RRJ has $11 billion in assets under management and primarily invests in China and Southeast Asia. The firm closed its third fund in late 2015 at $4.5 billion. Temasek is an investment firm controlled by the Singapore government that manages a $197 billion portfolio.

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• Topics
• Greater China
• Europe
• Expansion
• Support services
• China
• HNA Group
• RRJ Capital
• Temasek Holdings
• Growth capital