Chinese conglomerate HNA revealed its ownership

The acquisitive Chinese conglomerate HNA Group pulled an unusual move on Monday revealing its ownership structure after striking multi-billion dollar deals that have raised questions about corporate governance, strategic motivations, financial health and who exactly is calling the shots.

The company said that its largest shareholder, a private businessman in China named Guan Jun, had recently donated his 30 percent stake in the company to HNA’s charitable organization, the Hainan Cihang Charity Foundation. Combined with the 22.8 percent stake held by HNA’s sister charity in China, HNA says it is now 52 percent owned by the Cihang foundations. 

“Guan Jun has witnessed HNA Group’s development and has got in touch with HNA’s founding team members. He trusts us very much,” a HNA spokesman said in an email explaining why Guan gave away his shares in the company. The spokesman didn’t address other queries about Guan.

The remainder of the group is held by a dozen HNA executives and Hainan Airlines Holding, HNA’s core airline division.

In an interview with Reuters, Adam Tan, HNA’s chief executive, maintained that his company had a strong relationship with Wall Street banks, saying that Bank of America was the only one to stop working with HNA. Infact, the opaque corporate structure is one reason the bank recently decided to stop doing business with the company, according to an email reviewed by the New York Times. 

Tan said in the interview with Reuters that he was unclear about a timeline to close the buyout of SkyBridge, adding the US’s regulatory process may take more than a few weeks. Tan also shrugged away concerns about the Chinese government’s scrutiny on HNA. “We have nothing to hide,” he said.