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

(END) Dow Jones Newswires

November 08, 2016 18:05 ET (23:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.