China's conglomerate HNA Group Co. offers 1.4 billion Swiss francs ($1.47 billion) to acquire Swiss-based airline, gategroup. Gategroup's board of directors unanimously supported the public tend offer.
The deal is expected to be completed by July, pending a minimum acceptance condition of 67 percent approval by regulators.
Upon possible approval, HNA intends to delist gategroup from the SIX Swiss Exchange and operate the company as an "autonomous profile company," according to a gategroup news release.
The headquarters of gategroup will remain in Kloten, Switzerland, and be independently managed.
"It makes strategic sense that our company will become part of HNA, one of the leading providers of airport and aviation services worldwide," Andreas Schmid, chairman of gategroup said in a news release. "HNA has extensive expertise in the aviation industry, and its strong footprint in Asia will help gategroup to expand significantly in this fast growing region, where gategroup has strategic headroom."
HNA is a privately owned corporation and parent company to Chinese carrier Hainana Airlines, the fourth largest operator in China. HNA also owns Hong Kong Airlines, Lucky Air and China West Air.
Last year, HNA spent $2.8 billion on another Swiss-based company, Swissport Group, an airport ground handler.
