SINGAPORE (Jan 29): A Hong Kong-listed subsidiary of China’s HNA Group had terminated its acquisition of shares in SGX-listed Sapphire Corporation “by way of mutual consent”.

The Hong Kong company, Hong Kong International Construction Investment Management Group Co., had wanted to buy shares from two of Sapphire’s shareholders that would make it the largest shareholder with a combined stake of nearly 28%.

See: Sapphire Corp on track to win more rail contracts with HNA backing

Sapphire Corporation, which specialises in engineering works for China’s railway projects, was expected to benefit from wider access to resources and contacts from HNA in winning more projects.

“The termination of the SPAs is not expected to have a material impact on the Group’s operations and business fundamentals; and the Group’s consolidated net tangible assets per share and earnings per share for the financial year ending 31 December 2018,” says Sapphire’s CEO Wang Heng in a statement.

HNA Group, which started building itself into a conglomerate with its flagship Hainan Airlines, has been busy acquiring stakes in other companies around the world.

However, the group has come under increasing scrutiny by Beijing for its growing debt levels.

Sapphire Corp closed on Monday at 26 cents, up half a cent.