GEE Calls Off Planned Chinese JV Global Eagle Entertainment Inc. (GEE) announced in a July 25 filing with the US Securities and Exchange Commission that it terminated an investment agreement with Beijing Shareco Technologies Co., Ltd. (Shareco), a unit of Chinese conglomerate HNA Group Co., Ltd. (HNA), because of the parties’ failure to obtain approval from the Committee on Foreign Investment in the United States (CFIUS). Pursuant to the agreement, the two companies planned to establish a joint venture that would be 51% owned by Shareco, with the primary purpose of enabling GEE to provide inflight entertainment and connectivity services to HNA-owned airlines. They also agreed under the agreement that Shareco would invest up to $416m in GEE for a 34.9% interest in the company. CFIUS reviews focus on the national security impacts of investments in the United States by foreign individuals and entities. According to GEE, CFIUS concluded that the transactions contemplated under the investment agreement presented unresolved national security concerns. GEE also stated that, despite termination of the agreement, it will still be able to serve three of the 14 airlines within HNA. Read more related news in Space Business Review July 2017.
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