The U. S. government has ordered Chinese conglomerate HNA Group Co Ltd [HNAIRC. UL] to sell its majority stake in a Manhattan building whose tenants include a police precinct tasked with protecting Trump Tower, the Wall Street Journal reported on Friday.
HONG KONG (Reuters) – The U. S. government has ordered Chinese conglomerate HNA Group Co Ltd [HNAIRC. UL] to sell its majority stake in a Manhattan building whose tenants include a police precinct tasked with protecting Trump Tower, the Wall Street Journal reported on Friday.
The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments to weigh whether they present national security concerns, informed HNA several months ago that it had to divest itself of its holding in the building, the report said, citing people familiar with the matter.
CFIUS however did not explain to the aviation-to-financial services conglomerate why it had to sell the property, according to the report.
At the behest of CFIUS, HNA set up a blind trust and transferred its stake in the building to the trust that has its own board of directors, which have a fiduciary duty to the trust, not to HNA, the report said.
HNA is now in talks with potential buyers interested in the building to abide by the CFIUS order, though it was not given a deadline to sell, the report added.
CFIUS is an interagency U.
