China's HNA sells stake in Spanish hotels
HNA Group has sold some its shares in Spain's NH Hotels as part of a sale and repurchase deal.
The Chinese travel and property group is currently the largest single shareholder in NH, one of Spain's leading hotel chains.
It is understood that HNA will sell just over one percent of their current holding of 29.5 percent of NH shares.
Neither the buyer, nor the financial sum involved, has been revealed.
Logo of HNA Group. [File photo: IC]
NH Hotels and HNA Group have had a complicated relationship.
In 2016, former Chair of the NH board Charles Bromwell Mobus, Jr. wrote to shareholders expressing concerns about the management of NH and investors Oceanwood and Hesperia, shared by the HNA Group. In the open letter, he wrote:
''Three years ago, HNA Group rescued NH Hotel Group from the brink of insolvency by providing a necessary capital infusion. HNA remains NH Hotel’s largest single shareholder, with 29.5% of the outstanding share capital.
In June 2016, a minority investor group led by hedge fund Oceanwood Capital seized control of NH Hotel with the explicit support of Hesperia. Within hours of taking control of your Company, the Oceanwood and Hesperia led Board fired the highly respected CEO, Federico Gonzalez Tejera.''