HNA Weighs $1 Billion Sale of Aircraft Maintenance Firm SR Technics

(Bloomberg) -- HNA Group Co., the embattled Chinese conglomerate, is exploring options for Swiss aircraft-maintenance firm SR Technics including a potential sale, people familiar with the matter said.

The Chinese group, which grew out of a airline on tropical Hainan island, is working with a adviser on the potential disposal, the people said. HNA’s 80 percent stake in SR Technics could be valued at $700 million to $1 billion, said the people, who asked not to be identified because the matter is private.

HNA has already trimmed one of the country’s biggest debt piles by selling off dozens of assets from hotels to stakes in aircraft leasing companies. It is also seeking a buyer for airport-cargo handler Swissport International and container-leasing business Seaco, Bloomberg News has reported.

SR Technics business could be hurt as the airlines it services face increasing pressure, according to one of the people. Air Berlin Plc, one of SR Technics’s customers, filed for insolvency last year amid fierce competition and volatile oil prices.

No final decision has been made, and HNA could still decide to pursue other options for SR Technics or retain its ownership of the company, the people said. Representatives for HNA and SR Technics declined to comment.

Based in Zurich airport, SR Technics has more than 3,000 employees globally and provides maintenance, repair and overhaul services for airframes, engines and components, its website shows.

HNA bought its controlling stake in the company from Mubadala Development Co. in 2016 for an undisclosed sum, according to data compiled by Bloomberg. The Abu Dhabi government-backed investment fund retains the remaining stake.

©2019 Bloomberg L.P.