HNA's Tech Unit Attracts Digital China, Tech Mahindra
(Bloomberg) -- HNA Group Co.’s sale of its technology outsourcing arm has attracted interest from suitors including Digital China Group Co. and Tech Mahindra Ltd., people familiar with the matter said.
Buyout firm Advent International and some Chinese investment funds have also been weighing offers for HNA’s Pactera Technology International Ltd. unit, according to the people. The embattled Chinese conglomerate has asked for second-round bids within the next few weeks, the people said, asking not to be identified because the information is private.
Some investment funds could decide to join forces with a strategic bidder to make a joint offer, the people said. No final decisions have been made, and there’s no certainty the parties will decide to submit formal bids, the people said.
Representatives for Advent, Digital China, HNA and Tech Mahindra declined to comment. A representative for Pactera didn’t immediately respond to requests for comment.
HNA, which has been offloading assets to pay down debt, is working with Credit Suisse Group AG as it seeks to revive a sale of Pactera, Bloomberg News reported in December. Options under consideration include a full sale to one or multiple buyers, people with knowledge of the matter said at the time.
Valuation could be one of the main hurdles to a deal, according to the people. The Chinese conglomerate’s ownership of Pactera dates back to 2016, when it agreed to buy the company from Blackstone Group LP for about $700 million.
Pactera’s holding company, HNA EcoTech Panorama Cayman Co., said last month it would be further delaying a planned early redemption of its U.S. dollar bonds. HNA EcoTech’s notes due 2021 were indicated Friday at around 89 cents on the dollar, according to Bloomberg-compiled data.
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