HNA Group, which owns China’s fourth largest airline, Hainan Airlines, is interested in buying Swissport, the global air cargo handler. Bloomberg Business reported that Swissport’s owner, private equity firm PAI Partners SAS is looking for about US$3 billion for the company.
Negotiations over any potential deal could crumble, however, because the two parties have yet to agree on a price. Were the sale to go through, this would be the fifth-largest acquisition of a European firm by a Chinese company, according to data compiled by Bloomberg.
However, Reuters said that PAI Partners could possibly launch an IPO or a sale of the company this year, with a valuation of about $3.8 billion. PAI acquired Zurich-based Swissport in 2010 for more than $900 million. Swissport, which is present in 48 countries, handles approximately 4 million tonnes of cargo each year at 269 airports.
HNA has 14 subsidiaries in its aviation family. Its holding company includes real estate development, retail management, airport management and a financial investment unit.