London-based OM Asset Management plc (NYSE: OMAM) said that its parent Old Mutual plc (LSE: OML) agreed to sell a 24.95% stake in OMAM to HNA Capital US, a unit of Chinese global conglomerate HNA Group for $446 million in cash, reducing Old Mutual’s stake from 50.8% to 25.9%.
OMAM is a global, multi-boutique asset management company with approximately $240 billion of assets under management as of December 31, 2016. Its diverse affiliates offer leading, alpha-generating investment products to investors around the world.
OMAM’s partnership approach, which includes equity ownership at the affiliate level and a profit sharing relationship between OMAM and its affiliates, aligning their interests. OMAM’s business model combines the investment talent, entrepreneurship, focus and creativity of leading asset management boutiques with the resources and capabilities of a larger firm.
The firm’s predecessor Old Mutual began in Cape Town in 1845 as South Africa’s first mutual life insurance company. Old Mutual is a London-based international investment, savings, insurance, and banking group, with more than 16 million customers and £303.8 billion in assets under management as of December 31, 2015.
As reported by ExitHub in June 2016, OMAM agreed to acquire a 60% equity interest in Landmark Partners, a global secondary private equity and real estate firm, for $240 million in cash.
HNA Capital US is expected to appoint one director to the OMAM board after purchasing a first tranche of 9.95% of OMAM shares, and a second on the completion of the second tranche of 15% of OMAM shares. In both cases, these directors will replace existing nominees of Old Mutual.
HNA Group, controlled by its founder and chairman Chen Feng, is a global Fortune 500 company focused on Aviation, Holdings, Tourism, Capital, Logistics and EcoTech. Since its founding in 1993, HNA Group has evolved from a regional airline based on Hainan Island into a global company with over $90 billion of assets, $30 billion in annual revenues and an international workforce of nearly 200,000 employees, primarily across North America, Europe and Asia.
HNA’s tourism business is a fast-growing, vertically-integrated global player with market-leading positions in aviation, hotels and travel services. HNA operates and invests in nearly 2,000 hotels with over 300,000 rooms across major markets, and has 1,250 aircraft carrying over 90 million passengers to 260 cities worldwide.
As reported by ExitHub last October, HNA agreed to acquire a 25 percent equity interest in Hilton Worldwide Holdings Inc. (NYSE: HLT), from New York global private equity firm Blackstone (NYSE: BX) for $6.5 billion, reducing Blackstone’s interest in Hilton to approximately 21 percent.
Earlier in October 2016, Avolon Holdings Ltd., a subsidiary of Bohai Capital Holding Co. Ltd. (SLE: 415) controlled by HNA Group, agreed to acquire the CIT Commercial Air aircraft leasing business of New York-based CIT Group Inc. (NYSE: CIT), for $10 billion.
Around the same time, HNA EcoTech said it agreed to acquire Beijing-based information technology (IT) outsourcing services provider Pactera Technology International Ltd. from New York global private equity firm Blackstone Group (NYSE: BX) and other shareholders. The purchase price was reportedly $675 million.
In early August 2016, HNA Group agreed to invest $336 million in San Francisco-based RocketSpace, a leading technology accelerator campus and co-working space for high-growth startup, in a strategic joint venture deal to fuel RocketSpace’s global expansion, including China.
A few days later, HNA’s subsidiary Hainan Airlines Co. Ltd. acquired a 24% stake in Brazil’s third largest airline Azul SA for $450 million, becoming its largest single shareholder.
In February 2016, HNA agreed to acquire Ingram Micro Inc. (NYSE:IM) for $6 billion, the largest Chinese takeover of a US information technology company.
Photo: Chen Feng, Founder & Chairman of HNA Group.