Status: New/Upcoming Filing
Acquirer: HNA Group Co., Ltd. (China)
Acquired: OM Asset Management plc (England, Wales)
Value: US$446 million
The Chinese based conglomerate HNA Group Co., Ltd., entered into a share purchase agreement, through its subsidiary HNA Capital (U.S.) Holdings LLC, with Old Mutual plc and its subsidiary OM Group (UK) Limited (both companies incorporated and registered in England and Wales) to acquire from OM Group (UK) Limited 24.95% of the economic and voting power of the outstanding shares of OM Asset Management plc for approximately $446 million. (Share Purchase Agreement, OM Asset Management plc Schedule 13D, Ex-99.D, May 22, 2017, SEC Filing; see also Bloomberg, China’s HNA Buys $446 Million Stake in Old Mutual U.S. Unit, March 25, 2017.) According to a May 22, 2017, regulatory filing by OM Asset Management, CFIUS Approval is a condition to closing the transaction. (See Share Purchase Agreement, OM Asset Management plc Schedule 13D, Ex-99.D, May 22, 2017, SEC Filing.) HNA Capital (U.S.) Holdings LLC is “the New York-based subsidiary of HNA Capital, which is the financial services unit of HNA Group Co., Ltd.” OM Asset Management Press Release, Old Mutual plc Agrees to Sell a Minority Stake in OMAM to HNA Capital US, March 25, 2017.) The OM Asset Management business is “an institutionally focused, multi-boutique asset management business, delivering strong, diversified growth in attractive asset classes through organic initiatives and acquisitions.” (Id.) The HNA Group has experience with CFIUS relating to a pending investment in Global Eagle Entertainment, Inc. (see our previous post here), and as the largest stockholder of Tianjin Tianhai Investment Company Ltd., which received approval for its acquisition of U.S. logistics company Ingram Micro, Inc. (see our previous post here).