China’s HNA taps Goldman for IT firm Pactera’s US listing

The HNA Group logo is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration

HNA Group, the Chinese airline-to-banking conglomerate, has tapped investment bank Goldman Sachs to list Pactera, the Beijing-based IT outsourcing firm it bought from private equity firm Blackstone, sources familiar with the matter said.

The mandate for the U.S. initial public offering of Pactera, bought for $675 million in cash last year, is not yet official, the sources said, but the listing could come early next year.

News of the appointment of Goldman Sachs, a Wall Street stalwart, is a boost for HNA, even without a formal mandate. The sprawling conglomerate has seen its banking relationships come under scrutiny in recent weeks, as Beijing reins in what it sees as excessively splashy deals by China’s top dealmakers.

One of the sources said Pactera could see a $200 million pre-IPO funding round close in the third quarter, adding Goldman bankers had spoken to Chinese institutional investors. Some global private equity firms could also be part of that, particularly those that lost out to Blackstone when it bought the business in 2014, the source said.

Goldman advised HNA on the acquisition of Pactera.

Pactera and HNA did not respond to requests for comment. Goldman Sachs declined to comment.

Also read:

After $50b deal spree, China’s HNA sets out to clear ownership questions

China: Concerns over HNA’s debt levels prompt Bank of America to halt deals with it

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.