Chinese conglomerate HNA Group has further reduced its interest in the German banking firm Deutsche Bank from 8.8% to 7.9% in an attempt to resolve its financial problems.
According to a regulatory filing, the company reduced its stake in the German bank by allowing parts of complex derivatives arrangement to expire.
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Most of HNA’s stake in the Deutsche Bank is owned through derivatives contracts involving 65.5 million Deutsche Bank shares. The agreements of these shares are scheduled to expire in multiple batches by 20 July.
In February, HNA Group sold a 1.1% stake in Deutsche Bank for $375m, which slashed its stake to 8.8%.
The Chinese company then said that it has no further plans to reduce its stake in the German bank.
Recently, HNA, which had spent more than $40bn on acquisitions since 2015, unloaded its stake in Hilton Worldwide Holdings, reported Bloomberg.
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By GlobalDataThe company said to have told the creditors about its plans to divest nearly $16bn in assets during the first half of this year.
Deutsche Bank is going through a tough phase as its shares dropped by nearly 27% this year. Recently, the bank made an erroneous transaction of nearly $35bn to one of its outside accounts.
