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Temasek invests in debt-laden Hainan Airlines, in a move that analysts say is overpriced

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It was reported on Sunday (10 Jun) that Hainan Airlines would sell up to 20% of its Shanghai-listed shares to raise up to RMB 7 billion (S$1.458 billion). The shares will be sold to no more than 10 investors, one of which is Temasek Fullerton Alpha, a wholly-owned subsidiary of Temasek Holdings.

Trading of shares in China’s 4th largest airlines have been suspended since January over possible “major assets restructuring” and the enormous debt of its parent company, the HNA group.

HNA group went on a $50 billion acquisition spree since 2015 where it purchased stakes in companies ranging from asset management to hotels. The acquisition spree subsequently alarmed regulators, and mounting debt forced HNA to dispose US$14 billion worth of assets in the first 4 months........

© The Online Citizen