HNA extends Gategroup takeover offer, scraps minimum buy-in

HNA Group Co. extended its 1.4b-franc ($1.4b) offer for Switzerland’s Gategroup Holding and said it would scrap a previously set minimum acceptance level for the world’s second-biggest airline caterer. Gategroup shareholders can tender their stock until July 21 after counting at the end of the initial acceptance period showed HNA garnered 63.6% of the Swiss company, the Chinese conglomerate said Thursday. In April, HNA said the deal for the European company required a 67% buy-in. “HNA is pleased about this interim result and remains confident that more shareholders of Gategroup will recognize the benefits of accepting the offer and therefore tender their shares into the offer during the additional acceptance period,” the company said Thursday. Under the agreement, the airlines-to-supermarkets group controlled by Chinese billionaire Chen Feng had the option to walk away from the deal or drop the condition for minimum acceptance and extend the offer period through July 21. Hainan-based HNA said Thursday it expects the settlement to occur toward the end of Q3 or the beginning of Q4 this year. HNA’s purchase of Gategroup amid a boom in Asian air travel will add to the clutch of aviation assets that the acquisitive Chinese group has bought around the world. <br/>