Ingram Micro Parent Company Confirms Sale Rumours Are False
The Chinese-based parent company of Ingram Micro has confirmed that rumours the firm is planning to sell its ownership of the global distributor are false.
Subsidiary of Chinese-based HNA Group, Tianjin Tianhai, has informed media that it is not looking to sell its electronics distributor subsidiary, Ingram Micro, to Synnex Corp. [Despite its name, American-based Synnex Corp is not related to the Taiwanese parent of Synnex Australia].
In a Shanghai Stock Exchange statement, Tianjin Tianhai affirmed:
“Ingram Micro is an important, strategic investment project to the company and is a key cornerstone and asset to the company’s transformation and development”.
The company claims Ingram Micro’s Q3 operating income jumped 10.79% YOY, with net profits climbing 6.14 percent in the same period.
Tianjin Tianhai acquired Ingram Micro for US$6 billion in December 2016.
Rumours of the sale reportedly began circling on Friday, after Chinese trading of Tianjin Tianhai ceased on Friday, pending a “major plan”.
Associate analyst at US-based analyst firm, Raymond James & Associates, Adam Tindle, wrote in a research report on Friday:
“We have seen major consolidation across our distributors and ponder the possibility of one of our distributors buying Ingram”
“We think Synnex makes the most sense”
“The core distribution industry has undergone significant consolidation and this would immediately make Synnex the largest IT distributor in the world”
“The industry in which Concentrix operates is undergoing significant disruption as a result of trends in AI, machine learning, and automation, and we wonder if it would be best served as a standalone entity”.
According to Bloomberg, the HNA Group has been facing pressure, following a large amount of debt accrued during its buy-up of global assets.
On Wednesday, Bloomberg also reported that trading in another HNA Group company, Hainan Air, was suspended pending potential “major assets restructuring”.