HONG KONG (Reuters) – China’s HNA Technology Co Ltd is in preliminary talks to sell U.S. electronics distributor Ingram Micro Inc, as part of its parent group’s efforts to trim operations.
Discussions were at an early stage, HNA Technology, a listed arm of Chinese conglomerate HNA Group Co [HNAIRC.UL], said in a filing to the Shanghai stock exchange.
No agreement has been signed yet, HNA Technology said.
“Due to changes in market conditions and the company’s strategy, the company is in talks with a concerned party on selling Ingram Micro,” it said in the exchange filing.
Reuters reported on Friday that HNA Group was in talks to sell Ingram Micro to private equity firm Apollo Global management LLC, citing a source familiar with the matter.
HNA Technology said in September it had $3.55 billion of outstanding debt from the purchase of Ingram Micro, of which $350 million was due for payment this year.
Reporting by Meg Shen; Editing by Kirsten Donovan