Chinese conglomerate HNA Group has sold a 1.1% stake in German banking giant Deutsche Bank in a transaction valued at approximately €300m ($375m).
Following the completion of the deal, HNA Group’s shareholding in German bank has shrunk to about 8.8% from 9.9% at the beginning of February 2018.
The move to offload stake in Deutsche Bank comes at a time when the Chinese company is facing intense regulatory inspection for executing deals worth billion of dollars worth over the past two years.
C-Quadrat, the Austrian asset manager through which HNA had initially bought the stake in Deutsche Bank, said the Chinese company is not planning to further reduce its holding in the Geramn bank.
The Chinese group, which is facing severe fund crunch, first acquired nearly 10% shares of Deutsche Bank in early 2017. The deal drew the attention of regulators due to use of complex financing to acquire the stake in Germany’s largest lender.
In November 2017, American private equity firm Cerberus Capital Management acquired a 3% stake in Deutsche Bank. The deal made Cerberus the fourth largest shareholder in Deutsche Bank, after HNA Group, Qatar’s royal family and BlackRock.