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

By: John Honovich, Published on Feb 08, 2018

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.

**** * ***** ***,****** ***** *** ******** by * ******* *********** **** **** $* billion ** ****, ****** 40% **** **** ***** then ***** *****.

** *** ** ********** deal. *** *** ** much? *** *** ***** a ******** ******* ******* buy * **-***** ** distributor?

***, ******'* ******* ***** ** ******* apart.

*******,***** ***** **** ********,** ********* *******, *** **-******** ** not ******* ***** ********* debt-fueled expansion *** * **********:

**** **** ** ******* the ****** ******* *******, then ******* ***, ******* to ****** ******, ********** the ****** **** ***** Congress... **** ** ***** conspiracy, ***** *** ***** evil *******, *** ****’** been ******** *** * long ****.

***** **** ****** **** an exciting ***** ****, *** reality ** *******.

[***************]

*** *** ******* **** **** 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!

Bloomberg reported the conspiracy claim.

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)

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

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.

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.

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

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

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. 

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

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.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Dahua CEO Is Out on Feb 28, 2020
Dahua CEO Li Ke has resigned less than 3 years after he was brought in from Huawei to professionalize management. Inside this note, we examine...
The 2020 Video Surveillance Industry Guide on Dec 20, 2019
The 300-page, 2020 Video Surveillance Industry Guide covers the key events and the future of the video surveillance market, is now available, group...
Hikvision Dissolves North American Business Unit, Splits Canada and USA on Oct 15, 2019
Hikvision has dissolved its North American Business Unit, splitting up US and Canada operations as the PRC-government owned manufacturer faces...
Megvii Financials and Growth Examined on Aug 30, 2019
Megvii has already received more than a billion dollars in investment. Now, the company, a top China facial recognition provider, has filed for an...
In China, Foreign AI Companies Banned or Disadvantaged, Says Top China AI Company on Aug 28, 2019
Non-China (PRC) companies are prejudiced and unfairly targeted inside of the PRC's booming AI market, which not only denies them revenue inside of...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...
2019 Mid-Year Video Surveillance Guide on Jul 01, 2019
IPVM's new 400+ page Mid-Year Industry Guide brings all of these issues and events together in a single resource to read and review. It can be...
Dahua USA Celebrates 5 Years of Errors on May 22, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
Goldman and Fidelity Funds Sell Off Hikvision, Dahua Stock Over Xinjiang on Mar 29, 2019
Major US funds run by financial giants such as Fidelity and Goldman Sachs have sold their equity stakes in Hikvision and Dahua "as scrutiny...

Most Recent Industry Reports

Embedded Logix Thermal Temperature Detection System Examined on Apr 08, 2020
Embedded Logix has been producing thermal temperature measurement systems for industry and fire detection for over 10 years. Now, they are entering...
Micron 1 TB SD Cards Aim To Eliminate NVRs on Apr 08, 2020
Micron has boldly proclaimed their latest 1TB microSD "eliminates the need for network video recorders", targeting the growing market of...
US DoD Declares "Can No Longer Do Business" With Contractors Using Dahua, Hikvision, Huawei on Apr 08, 2020
The US Department of Defense has confirmed to IPVM that they fully support and intend to proceed with the NDAA 'blacklist clause' covering Dahua,...
IPVM's 12th Anniversary - Thank You! on Apr 07, 2020
IPVM is proud to celebrate it's 12 anniversary expanding our commitment to providing the industry independent and objective information on video...
Mobotix Thermal Body Temperature Detection Examined on Apr 07, 2020
Mobotix has jumped into the Coronavirus temperature detection market, but how do they compare to thermal incumbents like FLIR or ICI who have been...
Verkada Coronavirus Response: Free Temp Systems For Government and Health Care on Apr 07, 2020
Verkada has built a reputation on giving away things for free - free Yeti Tumblers, free trial cameras and now free temporary systems for...
Hikvision USA Refuses, Dahua USA Drives Forward With "Coronavirus Cameras" on Apr 07, 2020
Both have been federally banned, both sanctioned for human rights abuses but only one - Dahua - is taking aim at the booming "coronavirus cameras"...
China Surveillance Vulnerabilities Being Used To Attack China, Says China on Apr 07, 2020
While China video surveillance vulnerabilities have been much debated in the West in the past few years, China is now saying those vulnerabilities...
USA ICI Elevated Skin Temperature Detectors Examined on Apr 06, 2020
Infrared Cameras, Inc. (ICI) is aiming to help slow the spread of COVID-19 with "pinpoint accurate skin temperature measurement" using their...
Trade Groups Request NDAA Blacklist Delay Citing Coronavirus on Apr 06, 2020
Two trade groups representing government contractors have asked Congress to delay implementation of the NDAA's 'blacklist' clause from this August...