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China's HNA Group tipped to win bidding war for GE SeaCo

  • Maya Ando
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Chinese conglomerate HNA Group is likely to outbid private equity firm Kelso for container leasing business GE SeaCo, the Financial Times reported. The company has been put up for sale by General Electric (GE) and its joint venture partner and could fetch $2.5-3 billion, including debt.

GE SeaCo, which is 50 % controlled by GE’s finance arm, is said to have appointed Deutsche Bank last October to review strategic options and start looking for a buyer for the business. According to sources familiar with the situation, GE may decide to hold on to the asset.

GE SeaCo owns the world's fifth-largest container leasing fleet, with about 870,000 20-foot equivalent units. GE's original joint venture partner, Sea Containers, went bust in 2006 and the company's bondholders assumed its share of the asset.

HNA is the parent company of Hainan Airlines, China's fourth-largest airline carrier. It also owns Minsheng, a listed department store group, an airport operator, a logistics company and a hotel operating company. HNA counts George Soros among its investors.

 

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