An affiliate of Chinese conglomerate HNA Group plans to invest up to $416 million in Global Eagle Entertainment Inc., and the parties will form a joint venture focused on in-flight entertainment and connectivity.
Beijing Shareco Technologies Co. will initially invest about $103 million, buying about 9.3 million newly issued shares for $11 each, resulting in a 9.9% stake.
The second stage of the plan includes the purchase of $150 million of stock from Global Eagle and a tender offer for Global Eagle shareholders, which would increase Shareco's stake to 34.9%.
Shares of Global Eagle closed up 2% to $8.19 Tuesday and were halted in after-hours trading.Write to Josh Beckerman at firstname.lastname@example.org
(END) Dow Jones Newswires
November 08, 2016 18:05 ET (23:05 GMT)
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