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在线翻译:
szdaily -> Business
US company calls off US$416m deal with HNA unit
    2017-July-27  08:53    Shenzhen Daily

U.S.-BASED Global Eagle Entertainment Inc. said a US$416 million investment from a unit of Chinese conglomerate HNA Group Co. has been canceled as the deal did not receive regulatory approval by an agreed date.

Global Eagle, in a securities filing late Tuesday, said the “outside date” specified under the investment agreement had passed without any notification of approval from the Committee on Foreign Investment in the United States (CFIUS).

The announcement comes as the CFIUS, which reviews U.S. acquisitions by foreign entities for national security risks, is becoming more risk-averse under U.S. President Donald Trump.

At the same time, China’s government is increasingly scrutinizing banking relationships and aggressive deal-making of some large conglomerates, as it looks to restrict the flow of capital out of the country.

In November, Global Eagle and HNA unit Beijing Shareco Technologies Co. said Shareco would acquire up to 34.9 percent of the U.S. firm for about US$416 million and become its single largest shareholder.

The pair also planned to form a Chinese joint venture focused on in-flight entertainment and connectivity (IFEC).

Global Eagle said in its filing that with the main investment agreement canceled, “other related agreements” entered into with Beijing Shareco would also be terminated.

However, it said it continued to operate under existing agreements to provide IFEC equipment and services to Hainan Airlines Holding Co., Beijing Capital Airlines Holding Co. and Yangtze River Airlines Co. — all affiliated with HNA.

“The company and HNA continue to discuss opportunities to expand their relationship in the Chinese market for IFEC equipment and services,” Global Eagle said, adding there was no assurance such talks would result in any definitive agreements.

(SD-Agencies)

 

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