HNA to Settle Gategroup Offer This Year After 95.3% Acceptancesby
Chinese conglomerate extended offer period through July 21
Payment for shares to be made in third or fourth quarter
HNA Group Co. gained 95.3 percent of Gategroup Holding AG at the close of its 1.4 billion-franc ($1.4 billion) offer for the world’s second-biggest airline caterer and expects the deal to be settled before the end of this year.
Payment for the shares is expected to be made toward the end of the third quarter or at the beginning of the fourth quarter and the stock will be delisted thereafter, Gategroup said in a statement Wednesday.
The purchase builds on an acquisition spree by HNA, whose businesses run from airlines to financial services to supermarkets. The Hainan-based Chinese group extended the offer to July 21 after garnering 63.6 percent of Gategroup shares at the close of the initial acceptance period on July 1 and also scrapped a buy-in requirement of 67 percent.
HNA had offered Gategroup 53 francs a share plus a previously declared 30 centimes a share dividend.
Gategroup shares fell 0.4 percent to close at 52.05 francs Tuesday, giving it a market valuation of 1.39 billion francs. The shares have gained 23 percent this year.