China's HNA in talks to sell Ingram Micro to Apollo Global: source
A HNA Group logo is seen on the building of HNA Plaza in Beijing, China February 9, 2018. REUTERS/Jason Lee/File Photo
HNA Group Co is in talks to sell Ingram Micro Inc to private equity firm Apollo Global Management Llc, a source familiar with the matter said on Friday, as the Chinese conglomerate continues to scale back operations.
HNA hopes to sell the U.S. electronics distributor for $7.5 billion, including $1.5 billion in debt, the source said, adding that it is currently in talks with Apollo after rebuffing an earlier offer that it considered too low.
HNA has already pushed ahead with asset sales that have so far included real estate and stakes in hotels groups.
Apollo declined to comment and Ingram was not immediately available for comment. HNA was not available for comment outside normal business hours in China.
The Wall Street journal first reported here the news on Friday.
Earlier this month, Reuters reported that China Development Bank was leading a team to supervise HNA’s asset disposals as the heavily indebted conglomerate unwinds a $50 billion acquisition spree and scales back to a point that will leave it holding only core assets.
Bad debt managers China Cinda Asset Management Co advised HNA and has been involved in talks with potential buyers for Ingram, which HNA bought for $6 billion in 2016, Reuters reported in November.
HNA Technology Co, which owns Ingram, said in September it had $3.55 billion of outstanding debt from the purchase of the firm, of which $350 million was due for payment this year.