November 28, 2017 / 11:52 AM / 19 days ago

China's HNA CEO sees asset sales as part of adjustment - media

BEIJING, Nov 28 (Reuters) - HNA Group CEO Adam Tan said the acquisitive company is making adjustments to conform with national policies, and has sold some investments and real estate projects to improve its liquidity, domestic media reported on Tuesday.

Tan said the company would not invest in those areas not backed by the government, while supporting Beijing’s Belt and Road initiative, the 21st Century Herald reported.

“Companies cannot invest chaotically overseas, because chaotic investment creates trouble,” Tan was quoted in a separate article by the media portal Sina.com.

HNA Group, which has agreed deals valued at more than $50 billion over two years, including stakes in Hilton Worldwide Holdings Inc. and Deutsche Bank, is facing increased scrutiny from regulators and bankers due to announced changes to its shareholding structure and its use of leverage.

The Swiss Takeover Board said last Friday that HNA gave partially untrue or incomplete information during the takeover of Swiss airline catering firm Gategroup, which the conglomerate bought for $1.5 billion last year.

The Swiss regulator said the aviation, hospitality and financial services group had failed to disclose that company executives held controlling stakes in the conglomerate and also gave incorrect shareholdings for the top two stakeholders - Bharat Bhise and Guan Jun - in the Gategroup offer prospectus.

Reporting By Matthew Miller, editing by David Evans

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