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Global Eagle Entertainment calls off $416m pact with China's HNA

Staff Writer | July 26, 2017
U.S.-based Global Eagle Entertainment said a $416 million investment from a unit of Chinese conglomerate HNA Group has been canceled as the deal did not receive regulatory approval by an agreed date.
HNA Group
Investment   Absence of regulatory nod
Global Eagle, in a securities filing, said the "outside date" specified under the investment agreement had passed without any notification of approval from the Committee on Foreign Investment in the United States (CFIUS).

In November, Global Eagle and HNA unit Beijing Shareco Technologies Co Ltd said Shareco would acquire up to 34.9 percent of the U.S. firm for about $416 million and become its single largest shareholder.

The pair also planned to form a Chinese joint venture focused on in-flight entertainment and connectivity (IFEC).

Global Eagle said in its filing that with the main investment agreement canceled, "other related agreements" entered into with Beijing Shareco would also be terminated.