Status: Upcoming/New Filing
Acquirer: Shareco Group of America, Inc. (U.S.)/ Beijing Shareco Technologies Co., Ltd. (China)
Acquired: Global Eagle Entertainment, Inc. (U.S.)
Value: Approximately US$103 million
Industry: Multimedia Technology
On November 8, 2016, Global Eagle Entertainment Inc., a Delaware Corporation that provides media content, technology, and connectivity solutions for commercial aviation and other customers in the travel industry, entered into an Investment Agreement with Shareco Group of America, Inc., a Delaware corporation, and for limited purposes as noted in the agreement, with HNA Group Co., Ltd., Beijing Shareco Technologies Co., Ltd. (the parent company of Shareco Group of America and an affiliate of HNA Group), and, upon its execution of joinder, Bluefocus (Beijing) Investment Management Co., Ltd., whereby Shareco Group of America will acquire approximately 9.9% of Global Eagle Entertainment’s issued and outstanding common stock. (See Global Eagle Form 8-K, Nov. 14, 2016, SEC Filing; and the full agreement at Global Eagle Form 8-K, Ex-2.1, Nov. 14, 2016, SEC Filing; see also Global Eagle Entertainment Press Release, Nov. 8, 2016.)
HNA Group, Beijing Shareco Technologies and Bluefocus (Beijing) Investment Management are all limited companies organized under the laws of the People’s Republic of China. (See Global Eagle Form 8-K, Ex-2.1, Nov. 14, 2016, SEC Filing.) The agreement conditions the investment on receiving Committee on Foreign Investment in the United States (CFIUS) Approval. (See id., Section 4.06.) The investment is part of the parties intent to establish a joint venture “to provide inflight entertainment and connectivity in China and exclusively service aircraft operated by HNA airlines.” (Global Eagle Entertainment Press Release, Nov. 8, 2016.)
HNA Group has been involved with a potential CFIUS filing concerning another investment of Hilton Worldwide Holdings, Inc. (see our previous post here), and as the the largest stockholder of Tianjin Tianhai Investment Company Ltd., which recently received approval for its acquisition of U.S. logistics company Ingram Micro, Inc. We have been tracking the Tianjin Tianhai/Ingram Micro filing (see our previous post here).