Chinese conglomerate HNA Group agreed to sell Radisson Holdings to Chinese hotel giant Jin Jiang International, according to DealStreetAsia on August 10. Jin Jiang intends to fully acquire Radisson Holdings, and will first buy a 51.15% stake in its Stockholm-listed subsidiary Radisson Hospitality [RADH:SS] for SEK35 (USD3.89) per share. The transaction, of which the total price is not disclosed, is under regulatory scrutiny and will be completed by the end of this year.
For debt-laden HNA, the transaction marks another step in its over USD17bn of divestments, including offloading a US6.5bn stake in Hilton Worldwide Holdings [HLT:US] and a EUR726m stake in NH Hotel Group [NHH:SM] this year. By the end of 2017, HNA’s debt amounted to USD94bn as a result of a seven-year acquisition spree. For Jin Jiang, the Radisson purchase will make the Shanghai government-owned hotel group the seventh-largest in the world. Jin Jiang’s other overseas hotel assets also include a 12.3% stake in France’s Accor [AC:EN] and a 75% stake in Indian chain Sarovar Hotels.