Ingram Micro's New Chinese Government Ownership

By: John Honovich, Published on Feb 23, 2016

Ingram Micro is fighting back. Many have raised concerns about its agreement to be acquired by the Hainan Airline Group (HNA).

In a new SEC filing, Ingram Micro makes its case about why their impending Chinese owners will not have any negative impact. In particular, they declare:

"We have been assured by the HNA Group that neither they nor Tianjin Tianhai have any direct ownership stake held by the PRC government."

Unfortunately for Ingram, there is plenty of evidence for substantial Chinese government ownership and control. We break this down.

****** ***** ** ******** back. **** **** ****** concerns ***** *** ********* to ********** ** *** ****** Airline ***** (***).

** **** *** ******, ****** ***** ***** its **** ***** *** their ********* ******* ****** will *** **** *** negative ******. ** **********, they *******:

"** **** **** ******* by *** *** ***** that ******* **** *** Tianjin ******* **** *** direct ********* ***** **** by *** *** **********."

************* *** ******, ***** is ****** ** ******** for *********** ******* ********** ownership and *******. ** ***** this ****.

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

**************

******* ********** ********* ** companies ** ******* ************, *** *** *****-***** ****** Supervision *** ************** ********** (e.g., ***** ******* *** approves Hikvision's ***** *****). ***** is * ********** ****** **** manages ********* *** *** Chinese **********. ***** *** SASACs ** **** *** central *** ******** *****.

Hainan *****

******* ******* **** **** the ****** ******* ************'* largest *********** *** ******** in *** ****** ***** (Hainan ** *****'* ************ province).

*** *******, **** ***** **** ********:

"*** “** *****” ********** of ****** ******** ** attributable ** ****** *****.... ****** SASAC (******* * ******-***** subsidiary, ****** ********** *********** Holdings ******* ******* (海南省發展控股有限公司)) indirectly ***** ** *********** 24.97% ******** ** ***** China ***. ** ** the *** ** ******** 2015, ***** ***** *** held *** **.**% ******** in ****** ******** ******** and/or ********** ******* *** wholly-owned **********(***)." [****: ***** China *** ****** ** *** *****].

******* ********* ** **** made ** * **** ****** *******'* ********* report. 

***** ******** ******* *****, **** **** ***** HNA ******** * $*.* billion ******* *********, **** "****** ******** ***** .... will ****** *** *******’* controlling *********** [**] **.*%".

******, **** ******** ******* *** ********* *********** agreement **** *** ****** SASAC.

** ******, **** ** this ** ***.**** **** ************ **** ******** *** structure *********** ** ******'* SASAC:

Communist ***** *********

** **** ****,*** *********** *** *** Communist ***** *********** ********** ***** ********. This ** ******* ** large ********* **** *********** government ******* / ********* (e.g., ********* *** *** ***** Communist *****).

Ingram *******?

********* ** ******'* *********:

"** **** **** ******* by *** *** ***** that ******* **** *** Tianjin ******* **** *** direct ********* ***** **** by *** *** **********."

** ** ******** **********. *****, ******* of ****** ********* **, they **** *** *** onus ** *** *****, i.e., ** ** ** revealed ** ** *****, it ** *** ***** fault, ** ** *** fault ** *** *** 'assuring' **** *******. ********, by ********** ** ** not ***** '******' *** by *** '***', **** can ***** ****, ***** the ***'* ***** ********** ********* ********* and *** ************** ******* Hainan ********, ****** **** Beijing, **** *** ********* may ** ********** *** not * ***.

Impact / *** ** **?

** *** *** ****, the ******** ********** *** American ********** **** ** have ******* ***** ******'* forthcoming ******* ******. 

** *** *****, ******* the **** ***** *** America ** ** *** a ******* ******** ********* a ** ***********, ***** will ****** ********** *** remaining ** ************.

Comments (7)

Jeremy Ellis

02/23/16 03:02pm
No one was buying their stuff in the first place (i.e. look at their financials), I doubt it gets any better, or integrators start supporting them now.

John Honovich

IPVM | In reply to Jeremy Ellis | 02/23/16 03:06pm

Ingram Micro $46 billion revenue 2014.

They are not a major player in video surveillance but they are one of the biggest in general IT.

Undisclosed #1

In reply to John Honovich | 02/23/16 04:02pm

The biggest.

Undisclosed #1

02/23/16 05:05pm

On the other, perhaps the best thing for America is to let a Chinese airliner mismanage a US distributor, which will likely strengthen the remaining US distributors.

And if it gets cancelled, it will strengthen Ingram Micro to the tune of $400,000,000.

#ingramaintnofool

John Honovich

IPVM | In reply to Undisclosed #1 | 02/23/16 05:22pm

"it will strengthen Ingram Micro to the tune of $400,000,000."

From the SEC Filing:

"The merger agreement also provides that upon termination of the agreement under certain circumstances, Tianjin Tianhai would be obligated to pay Ingram Micro a termination fee, which will be equal to $200 million if the agreement is terminated in the first 30 days after signing, $300 million if the agreement is terminated between the 31st day and the 60th day after signing, and $400 million if the agreement is terminated any time after the 61st day following signing"

Avatar

Armando Perez

IPVMU Certified | 02/23/16 05:09pm

Maybe they will have an exclusive on Hikvision. :p

Michael Goodwin

02/23/16 08:22pm

Since you guys are so worried about "local supply" it would make sense, just start pumping all the Chinese stuff through them.. they will be a local supplier

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 on China

China Dahua Replaces Their Software With US Pepper on Aug 22, 2019
What does a US government banned company do to improve its security positioning in the US? Well, Dahua is unveiling a novel solution, partnering...
Uniview Beats Intel In Trademark Lawsuit on Aug 19, 2019
Uniview has won a long-running trademark lawsuit brought by Intel, with Beijing's highest court reversing an earlier Intel win, centered on...
Biometrics Usage Statistics 2019 on Aug 13, 2019
Biometrics are commonly used in phones, but how frequently are they used for access? 150+ integrators told us how often they use biometrics,...
US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...
Hikvision Global News Reports Directory on Aug 11, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
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...
Indonesia Security Association Chairman Interview on Aug 01, 2019
Indonesia is a huge country with a population close to the US and a fast-growing economy. Its security industry is also growing rapidly but faces...
Hikvision Cameras Covering Concentration Camps on Jul 29, 2019
Hikvision cameras monitoring a concentration camp were shown in a recent BBC investigation: The video excerpt shows the Hikvision cameras and...
Australia Security Full Show Report on Jul 25, 2019
IPVM went to Australia attending the 3 days of the Australia Security Exhibition: This was held at the ICC Sydney, as shown below: In this...
History of Video Surveillance on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to ab emerging AI cloud era.  The goal of this history is to...

Most Recent Industry Reports

TMA Apologizes to Amazon / Ring on Aug 23, 2019
Not only is Amazon / Ring making major incursions into the residential security market, the organization representing the biggest incumbents, The...
China Dahua Replaces Their Software With US Pepper on Aug 22, 2019
What does a US government banned company do to improve its security positioning in the US? Well, Dahua is unveiling a novel solution, partnering...
Security Integrators Outlook On Remaining Integrators In 2025 on Aug 22, 2019
The industry has changed substantially in the last decade, with the rise of IP cameras and the race to the bottom. Indeed, more changes may be...
First GDPR Facial Recognition Fine For Sweden School on Aug 22, 2019
A school in Sweden has been fined $20,000 for using facial recognition to keep attendance in what is Sweden's first GDPR fine. Notably, the fine is...
Anyvision Facial Recognition Tested on Aug 21, 2019
Anyvision is aiming for $1 billion in revenue by 2022, backed by $74 million in funding. But does their performance live up to the hype they have...
JCI Sues Wyze on Aug 21, 2019
The mega manufacturer / integrator JCI has sued the fast-growing $20 camera Seattle startup Wyze. Inside this note: Share the court...
Dahua 4K Camera Shootout on Aug 20, 2019
Dahua's new Pro Series 4K N85CL5Z claims to "deliver superior images in all lighting and environmental conditions", but how does this compare to...
ZK Teco Atlas Access Control Tested on Aug 20, 2019
Who needs access specialists? China-based ZKTeco claims its newest access panel 'makes it very easy for anyone to learn and install access control...
Uniview Beats Intel In Trademark Lawsuit on Aug 19, 2019
Uniview has won a long-running trademark lawsuit brought by Intel, with Beijing's highest court reversing an earlier Intel win, centered on...
Suprema Biometric Mass Leak Examined on Aug 19, 2019
While Suprema is rarely discussed even within the physical security market, the South Korean biometrics manufacturer made global news this past...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact