(Reuters) – RRJ Capital is in talks with Chinese conglomerate HNA Group Co [HNAIRC.UL] to lead a $4 billion investment in U.S. electronics distributor Ingram Micro Inc, Bloomberg reported on Saturday, citing people familiar with the matter.
The group led by Hong Kong-based RRJ will invest through an HNA bond that can be converted into close to 50% of Ingram Micro’s shares, Bloomberg reported.
Faced with soaring debts and China’s crackdown on aggressive dealmaking firms, airlines-to-finance conglomerate HNA has been pushing ahead with a series of asset sales that have so far included real estate and stakes in hotel groups.
The bond proceeds will be used to pay down a loan taken by HNA from Chinese banks for the acquisition of Ingram Micro, in a deal that could be signed as early as next week, the report added.
RRJ Capital, HNA Group and Ingram Micro were not immediately available for requests seeking comment.
Given the current trade situation, the reduced Chinese ownership in Ingram Micro is likely to help the consortium win the approval of the Committee on Foreign Investment in the United States, Bloomberg said, citing one of the people.
In October last year, Reuters reported that HNA had put up for sale property assets worth at least $11 billion, citing documents. Those documents listed more than 80 assets that HNA has either put up for sale or intends to sell.
China’s indebted HNA Group had met bankers in January to tout the latest assets it was putting on the block as it looked to raise funds and stave off an intensifying cash crunch.
Reporting by Mekhla Raina in Bengaluru; Editing by Leslie Adler and Matthew Lewis