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Tianhai Investment’s $6bn acquisition plan questioned by stock exchange

Shanghai Stock Exchange has sent an inquiry letter to HNA-affiliated Tianhai Investment, formerly Tianjin Marine, requesting details for the company’s earlier announced plan to acquire full equity in US technology and supply chain company Ingram Micro for $6bn.

In February, Tianhai Investment entered into a merger agreement with Ingram Micro under which Tianhai Investment will acquire full equity in Ingram Micro in an all-cash transaction. Adam Tan, ceo of HNA Group said the transaction would help HNA Group transform from a logistics operator to a supply chain operator.

However the total assets of Tianhai Investment stands at around $1.94bn, falling well short of the $6bn acquisition price.

The stock exchange has asked Tianhai Investment for explanations of the funding source, risks and compliance of the transaction.

Tianhai Investment said that it will use the RMB8.65bn ($1.3bn) funds raised in 2014, initially raised for the acquisition of tankers and LNG carriers, to support the acquisition of Ingram Micro. The stock exchange also questioned the legal compliance of this move.

When contacted by Spalsh, Tianhai Investment said it will respond to the stock exchange queries soon.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

Comments

  1. Jason, is there any indication on a timeline from Tianhai? Also, what is the likelihood of HNA backing them financially?

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