Ingram Micro Owner HNA Declares "Victim of Conspiracy Against China"

By John Honovich, Published Feb 08, 2018, 07:16am EST

Just 2 years ago, Ingram Micro was acquired by a Chinese company that paid them $6 billion in cash, nearly 40% more than their then stock price.

It was an incredible deal. Why pay so much? And why would a regional Chinese airline buy a US-based IT distributor?

Now, Ingram's Chinese owner is falling apart.

However, HNA is going down swinging, as Bloomberg reports, HNA Co-Chairman is not blaming their dangerous debt-fueled expansion but a conspiracy:

They want to disrupt the entire Chinese economy, then disrupt HNA, leading to social unrest, subverting the entire 19th Party Congress... This is their conspiracy, these are their evil motives, and they’ve been plotting for a long time.

While that sounds like an exciting movie plot, the reality is banaler.

*** *** ******* **** **** level,** *** *** ********:

******* ***** **** *** October, *** *** ********* over ** ***** ******** more **** $** *******... A **** ** *** company *** ** *** 8.875% ** ******** ** borrow $*** ******* *** less **** * ****, compared **** ******* ***** issued ** * ****-***** Chinese ******** ********* ** 5.5%.

**** ****** ******* *****,*** *** *******, *** *** ***** to ***** ***** **** its *** *********:

******* ************ *** *****, ***** needs ** *** *** billions ** ******* ** debt **** ****, *** come ** **** ******* way ** ***** ***** from *** *********.... *** ******** pitched *** ********* * new ********** ******* **** promises * ******* ********** return ** *.*% *** that ***** *********** ***** as **** ** **%, according ** ********* ******** by *** **** ****** Journal.

***, *** *** ******* China's ********* ******** ***** *******:

***** ********** ******* *** Communist ***** ******* ********* with ** ******* ** its ****

**** ** **** *** HNA? *** ******* ********** can ****** **** *** HNA ** **** **** to. ****, ***'* ******* ** a ********** ******* *** Chinese ********** ***** **** into *** ********** ********** them.

*******, ** *** *** Ingram ** *** ** the ******** ******* ********* HNA *** ****** *** in *** **** *** years, *** ********* *** ********** is ****. **** ****** this, *** *** ******** to**** **** $** ******* in ****** **** ****.

******, ***** *** ** a ****** ****. ***** companies **** ****** ***** ** sold *** ** * fraction ** ***** *********** price, ***** ***** *** hurt ******'* ******** ************ since **** **** ******* cashed *** *** ***** be * **** *** someone *** ***** ***** assets ** ******** *******. Does ****** **** ** buy ******?

Comments (11)

Well it's safe to say the WSJ subscription is paying off John!

Agree
Disagree
Informative
Unhelpful: 1
Funny: 1

Bloomberg reported the conspiracy claim.

Agree: 1
Disagree
Informative
Unhelpful: 1
Funny

I was referring to the two obvious links to WSJ, as I see more and more WSJ links on IPVM.
But hey you're smart enough to know and see that, but deflecting comes natural (lighten up it's a pun)

Agree
Disagree
Informative
Unhelpful: 1
Funny

This story is based directly on Bloomberg's report. The WSJ links are secondary. I am simply addressing the facts of the matter.

Agree: 1
Disagree
Informative
Unhelpful: 2
Funny

I think the central committee and Mr. Xi will go with math and common sense over fear mongering toadyism on this one.  Plus they need to keep their powder dry for the much more fundamentally serious bailouts infrastructure investments on the horizon.

Agree
Disagree
Informative
Unhelpful
Funny: 2

Well that escalated quickly: China seizes control of Anbang Insurance as Chairman prosecuted

Looks like Anbang is China's AIG...Except of course Anbang's CEO looks like he's actually going to jail.

Agree
Disagree
Informative: 1
Unhelpful
Funny

For clarity, Anbang is another troubled Chinese mega-company, separate from HNA. 

Agree
Disagree
Informative: 1
Unhelpful
Funny

Why take personal responsibility when you can blame it on the boogeyman? I'm sorry, boogey"person". Hope I didn't offend anyone.

Agree
Disagree
Informative
Unhelpful
Funny: 6

The 'conspiracy' is evidently having an impact. Today, report of HNA laying off 25% of its workforce (~100,000 people).

No word on impact to Ingram directly but not a bullish sign to have that massive of a move.

Also, in January, HNA denied reports they were planning to sell Ingram to Synnex. However, given HNA's continued deterioration, it is growing more likely that something will happen with Ingram. 

Agree
Disagree
Informative: 1
Unhelpful
Funny

Now, HNA is being bailed out by the Chinese government - Bloomberg: China Prepares State Support for HNA Fundraising

Agree
Disagree
Informative
Unhelpful
Funny

Update: HNA's Co-Chairman, who earlier this declared HNA to be a "Victim of Conspiracy Against China", has died, falling while trying to take pictures in France.

Given HNA's troubled state and his conspiracy claim, this has generated various conspiracy theories for his death. Conspiracies aside, this has created more challenges for the embattled company.

Also, in May, Reuters reported that HNA was trying to sell Ingram, which HNA quickly denied. HNA's financial problems continue so any number of assets are likely to be sold.

Agree
Disagree
Informative
Unhelpful
Funny
Read this IPVM report for free.

This article is part of IPVM's 7,114 reports and 943 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now
Loading Related Reports