HNA Taps Credit Suisse to Revive Sale of Pactera Unit

(Bloomberg) -- HNA Group Co. is working with Credit Suisse Group AG as the embattled Chinese conglomerate seeks to revive a sale of its tech outsourcing arm Pactera Technology International Ltd., according to people familiar with the matter.

HNA may launch a sale process as soon as early next year, the people said, asking not to be identified because the information is private. A sale of Pactera could attract interest from both private-equity firms and technology companies, according to the people.

Options under consideration include a full sale to either one or multiple buyers, the people said. Valuation could be one of the main hurdles to a deal, as there is a gap between what HNA paid for Pactera and what potential buyers may be willing to offer, the people said.

HNA’s ownership of Pactera dates back to 2016, when it agreed to buy the company from Blackstone Group LP for about $700 million. Pactera has had funding difficulties in the past two years, illustrating how HNA is still struggling to cope with the debt burden amassed during a $40 billion takeover spree.

While the conglomerate has been shedding assets this year to reduce leverage, it no longer has access to cheap financing after some banks distanced themselves from the group and China cracked down on the shadow lending system that helped fund HNA’s expansion.

A representative for HNA didn’t immediately respond to a request for comment, while a representative for Credit Suisse declined to comment. Reuters reported in October that HNA was exploring options including a sale for Pactera and that it had held talks with investors including Ant Financial.

--With assistance from Haze Fan, Sarah Syed, Vinicy Chan and Crystal Tse.

To contact the reporter on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net

To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Timothy Sifert

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