Air France-KLM in talks to sell stake in catering unit to China's HNA

Mon May 30, 2016 5:03pm EDT
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PARIS (Reuters) - Air France-KLM (AIRF.PA: Quote) is entering exclusive negotiations with China's HNA Group to sell a stake in its catering business Servair, the Franco-Dutch airline group said on Monday.

A deal to sell 49.99 percent of Servair and transfer operational control to HNA would be based on an enterprise value of the catering unit of 475 million euros ($528.87 million), Air France said.

Aviation and shipping conglomerate HNA stepped up its global expansion by agreeing in April an all-cash deal to buy Swiss airline catering business Gategroup Holdings GATE.S for $1.5 billion.

"Subject to HNA's acquisition of Gategroup, Air France and HNA intend to create the leading platform in the inflight catering business," Air France said in a statement.

(Reporting by Cyril Altmeyer and Maya Nikolaeva; Editing by David Goodman)

The logo of Air France-KLM is seen during the company's 2014 First-Half results presentation in Paris July 25, 2014.    REUTERS/Benoit Tessier