HONG KONG (Reuters) - HNA Technology Co Ltd, part of Chinese conglomerate HNA Group, said on Wednesday it scrapped a plan to acquire Chinese company Dangdang’s e-commerce assets as transaction parties failed to reach agreement.
The ditch of the acquisition plan marks the latest blow to HNA Group which lately has done a series of divestments to slash debt at the aviation-to-financial services group.
HNA Technology, previously known as Tianjin Tianhai Investment, said in April it planned to take full control of e-commerce platform Dangdang.com for $1.2 billion.
“There had been a prolonged period since the company announced the plan in April and capital market conditions had changed a lot since then,” HNA Technology said in a filing to the Shanghai stock exchange.
“The company had not reached agreement with transaction parties and the deal now faces significant uncertainties,” it said in the filing.
Since the proposed acquisition was announced, HNA Technology has been repeatedly questioned by the Shanghai exchange over issues including Dangdang’s $1.2 billion valuation.
Trading in shares of HNA Technology remains suspended. It will apply for trade resumption after its meeting with investors on September 21.
Reporting by Meg Shen and Twinnie Siu, editing by Louise Heavens