HNA targets debt-reduction, keen to sell off stake in Deutsche Bank

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HNA targets debt-reduction, keen to sell off stake in Deutsche Bank

Acquiring stakes in different companies is quite a trend in the high halls of financial businesses. There's, however, a different side to this narrative of acquisitions as Chinese business giant HNA is recently experiencing.

HNA which has a stake in the German financial services' company Deutsche Bank has decided to disinvest its stake by selling it off, according to a report published in the Wall Street Journal on Friday. HNA's stake in Deutsche Bank is said to be around 7.6% or about $1.5 billion (or €1.5 billion).

HNA will be selling off its stake over the next year-and-a-half in order to reduce the debts it has accumulated on account of its acquisition drive. The last few months have been hard on the company, which was affected by the death of its co-founder and joint-chairman Wang Jian in July.

The 57-year-old passed away suddenly after falling from a parapet trying to take photographs, while on a visit to Provence in France. With respect to HNA, alongside selling off its stake in Deutsche Bank, it is also trying to disinvest its shares in several other companies.

Most prominent of these is Swissport, an Opfikon-headquartered company providing ground and cargo-handling services although the company representatives haven't denied or confirmed about this. With respect to the share-market value of Deutsche Bank, the company had ceded about 0.6% of its shares' value post the revelation of HNA's disinvestment.