Ping An Insurance, HNA Group submit tenders offers for Shanghai Jahwa
Ping An Insurance (Group) Company of China (601318, 2318.HK) and HNA Group, the parent of Hainan Airlines (600221), both submitted tender offers yesterday for Shanghai Jahwa Group, the parent of Shanghai Jahwa United (600315), reports Shanghai Securities News.
Both Ping An and HNA declined to disclose details regarding the value of their tender offers.
HNA Group offered to inject five billion yuan into Jahwa Group over the next five years to support Jahwa Group's acquisitions of top-tier international cosmetics brands, in order to build Jahwa up into a leading company in the domestic market.
HNA gave a committment that it will not change the effective controller of both Jahwa Group and Shanghai Jahwa United in the next five years.
HNA has credit lines of 271.6 billion yuan, of which 150 billion yuan is unused. It will provide financial support to Jahwa Group with funds from these credit lines.
According to its plan, Jahwa Group will increase its annual revenue from four billion yuan to 12 billion yuan in the next five years. If the target is accomplished, HNA will pay bonuses totaling 100 million yuan to the employees of Shanghai Jahwa United.
HNA Group currently owns 14 airlines, 14 airports, and more than 60 hotels. It had acquired NH Hotels, the third-largest hotel chain in Europe. NH Hotels owns more than 400 hotels in 25 countries.
Ping An plans to turn Jahwa to a supplier of an entire range of cosmetics products for daily use, from the low-end to the mid and high-end markets.
In addition, it plans to explore related luxury markets, such as jewelry and watches, which are compatible with Jahwa’s existing business.
Ping An said it will offer financial support in the areas of insurance, bank credit, and fundraising through bond issuances, to Jahwa.
Shares of Jahwa were up 0.03 percent to close the morning session at 35.29 yuan per share.
whatsonsanya.com does not necessarily endorse their views or the accuracy of their content. For copyright infringement issues please contact firstname.lastname@example.org