The offer of US$38.90 per share from HNA unit Tianjin Tianhai Investment Co Ltd represents a 31.2 per cent premium to Ingram’s closing price on Wednesday.
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Ingram Micro’s shares were trading at $36.40 in after-hours trading.
Once the deal closes, Ingram Micro will operate as a subsidiary of Tianjin Tianhai under HNA Group, the largest stockholder of Tianjin Tianhai. After acquiring publicly held Micro D, Ingram Industries grouped these companies into Ingram Micro – creating the first $1 billion wholesale distributor of computer products – and in 1996 returned the business to the stock exchange.
This story has not been edited by Firstpost staff and is generated by auto-feed.
CFIUS will now look into ChemChina’s $44 billion proposed acquisition of Swiss agribusiness company Syngenta, which is the largest overseas deal by a Chinese company.
“Ingram Micro has clearly established itself as a leading distributor and global provider of IT products and services”, HNA chief executive Adam Tan said in the statement.
“We are delighted to join forces with HNA Group, a partner who shares our vision for Ingram Micro and is committed to accelerating the growth of our business to provide innovative solutions across the IT ecosystem”, he says.
The transaction has been unanimously approved by both Ingram Micro’s and Tianjin Tianhai’s boards of directors.
Developed from a local aviation transportation operator to a conglomerate encompassing core divisions of aviation, holdings, capital, tourism and logistics, HNA Group’s business outreach has expanded to all parts of the globe.
Alain Monié wiil continue serve as CEO for Ingram Micro, even after completion of the deal.
HNA has been making strategic investments as it pursues stronger domestic and overseas growth.
Larry Sussman, managing partner at the Beijing office of global law firm O’Melveny & Myers, said national security concerns will not stop the flow of investments to the United States from China.
“Chinese economic growth is slowing, its markets are increasingly competitive and its government has made efforts to promote freer movement of capital”.
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“We count more than US$22 billion worth of pending acquisitions, focused on information and communications technology, electronics, white goods, entertainment and financial services”, Rhodium analysts Thilo Hanemann and Cassie Gao said in the report.
