Chinese conglomerate HNA Group has further slashed its stake in Deutsche Bank from 8.8% to 7.9% to address its financial problems.
According to a regulatory filing, the company reduced its stake in the German bank by allowing parts of complex derivatives arrangement to expire.
Most of HNA’s stake in the Deutsche Bank is owned through derivatives contracts involving 65.5 million Deutsche Bank shares. The agreements of these shares are scheduled to expire in multiple batches by 20 July.
In February 2018, HNA Group offloaded a 1.1% stake in Deutsche Bank for $375m, thereby reducing its holding to 8.8%.
At that time, the Chinese firm said that it has no further plans to reduce its stake in the German bank.
Recently, HNA, which had spent more than $40bn on acquisitions since 2015, sold its stake in Hilton Worldwide Holdings, reported Bloomberg.
The company also informed its creditors about plans to divest nearly $16bn in assets during the first half of this year, the report said.