China’s HNA makes SFr1.4b bid for Switzerland’s Gategroup

China’s HNA Group has launched a SFr1.4b takeover offer for Switzerland’s Gategroup air services company, in what would be the acquisitive conglomerate’s second big purchase in the country in less than a year. Extending this year’s overseas spending spree by Chinese companies, HNA on Monday announced an all-cash offer for the Zürich-based catering and hospitality group that was previously part of the Swissair national airline.<br/>However, the offer was rejected as insufficient by activist shareholders owning 11.3% of Gategroup shares. Jonathan Herbert, chief investment officer at Cologny Advisors in London, which is acting with Switzerland-based RBR Capital Advisors, said extensive restructuring was needed at Gategroup to boost profit margins. He claimed the Chinese takeover was “a way to blunt our efforts”, and predicted rival bidders would emerge. Chinese conglomerates spent $101b on outbound mergers and acquisitions in Q1 — almost as much as in the whole of 2015. The overseas expansion has been driven by the limited options for domestic investment and a desire to gain global exposure.<br/>