(Bloomberg) -- HNA Group Co. is considering a sale of its majority stake in oil storage and logistics business HG Storage International Ltd., as the embattled Chinese conglomerate seeks to cut debt through asset sales, people familiar with the matter said.
The group has started to sound out potential buyers for the 51 percent holding, said the people, who asked not to be identified because the deliberations are private. HNA is seeking a valuation close to the $775 million it agreed to pay for the stake in its 2017 deal with Glencore Plc, the people said.
HNA has already offloaded dozens of assets from hotels to stakes in aircraft leasing companies as it chips away at one of China’s biggest corporate debt burdens. It’s also aiming to sell airport-cargo handler Swissport International as well as container-leasing business Seaco and aircraft-maintenance firm SR Technics, Bloomberg News has reported.
Deliberations about a possible sale of HG Storage are at an early stage, and HNA could still decide against a deal, the people said. Glencore holds the remaining 49 percent stake in HG Storage. Spokesmen for HNA and Glencore declined to comment.
HG Storage was created to consolidate Glencore’s petroleum products storage and logistics businesses, with assets located in trading hubs across Europe, Africa, the Middle East and the Americas. Glencore sold the stake in HG Storage to HNA Innovation Finance Group Co. in December 2017.
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