HNA Cuts Deutsche Stake -- WSJ
April 23 2018 - 3:02AM
Dow Jones News
By Jenny Strasburg
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 23, 2018).
HNA Group Inc. has cut its stake in Deutsche Bank AG to 7.9%
from 8.8%, the Chinese conglomerate disclosed Saturday, as it
continues to unload its overseas holdings.
This comes after HNA spent billions of dollars in financing and
complex derivatives in 2017 to build its stake in the struggling
German lender, becoming Deutsche Bank's biggest shareholder with a
holding of just under 10%.
Since that position was disclosed almost a year ago, Deutsche
Bank shares have declined by more than 30%. They traded Friday
around EUR11.57 in Frankfurt.
An HNA spokesman said Saturday the company "decided not to renew
a part of the financing structure for our stake in Deutsche Bank,"
citing "the current market environment." The stake cut was
disclosed in a regulatory filing.
HNA is still committed to remaining "a major investor in
Deutsche Bank," the spokesman said. The conglomerate had previously
said it didn't have plans to reduce its Deutsche Bank stake.
A Deutsche Bank spokesman declined to comment.
The Chinese company has been selling off billions of dollars
worth of real estate and other assets after a global acquisition
spree left it cash-strapped and pressured by banks to reduce
financing.
Deutsche Bank has been dogged by consecutive full-year losses
and questions about its investment-banking strategy. The lender
dismissed Chief Executive John Cryan earlier in April and replaced
him with Christian Sewing. Mr. Sewing has been with the company
more than two decades in risk and audit roles and most recently ran
the German-centric retail, private and commercial bank.
The CEO shake-up sparked other high-level departures. Deutsche
Bank is scheduled to report first-quarter earnings April 26.
Write to Jenny Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
April 23, 2018 02:47 ET (06:47 GMT)
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