(Reuters) – A consortium led by Asian non-public fairness group RRJ Capital is finalizing a cope with Chinese language conglomerate HNA Group to speculate $four billion in HNA unit Ingram Micro Inc for a controlling stake within the U.S. electronics distributor, a supply mentioned on Monday.
Debt-laden airlines-to-finance conglomerate HNA has launched a collection of asset gross sales together with actual property and stakes in lodge teams over greater than a 12 months following China’s crackdown on aggressive dealmaking corporations.
HNA purchased Ingram for $6 billion as a part of the $50 billion price of offers it had introduced previously few years.
The supply, who had direct information of RRJ’s plan and didn’t want to be recognized because the talks are non-public, mentioned the funding group will inject funds through an HNA convertible bond that can give it management of Ingram Micro. The deal is ready to be firmed up in a couple of days, the supply mentioned.
RRJ Capital was co-founded by brothers Richard and Charles Ong. Richard is a former Goldman Sachs dealmaker, whereas Charles is a former chief funding officer of Singapore state investor Temasek Holdings. It runs operations based mostly out of places of work in Hong Kong and Singapore.
RRJ Capital, HNA Group and Ingram Micro weren’t obtainable for feedback.
The id of different consortium members was not instantly recognized.
The non-public fairness agency and HNA have been companions earlier than.
This 12 months, RRJ Capital accomplished a deal to buy all excellent shares in Swiss-based airline caterer Gategroup Holding AG from HNA. Temasek remained invested in Gategroup by a compulsory exchangeable bond.
Reuters reported final 12 months that HNA was in talks to promote Ingram Micro to non-public fairness agency Apollo International Administration LLC (APO.N).
Subsequently, HNA Know-how Co Ltd (600751.SS), an HNA unit mentioned it was in preliminary talks to promote Ingram Micro as a part of its mother or father group’s strikes to trim operations.
HNA Group had met bankers in January to element the most recent property it was placing on the block because it appeared to boost funds and stave off an intensifying money crunch.
Bloomberg earlier reported information of HNA’s talks with the RRJ-led group.
Reporting by Anshuman Daga in SINGAPORE and Mekhla Raina in BENGALURU; Enhancing by Muralikumar Anantharaman