Chinese conglomerate HNA agreed to buy the Swiss airline catering company gategroup on Monday for 1.4 billion Swiss francs ($1.5 billion, 1.3 billion euros), in the latest major Chinese overseas acquisition.

Gategroup's management endorsed the offer, which will see HNA pay 53 Swiss francs per share in a deal that could be finalised in mid-July if approved by 67 percent of gategroup's shareholders.

HNA is led by Chinese billionaire Chen Feng, an increasingly aggressive tycoon whose company has scooped up a string of aviation assets in recent years as it tries to capitalise on Asia's blossoming air travel business.

HNA -- best known as a parent of Hainan Airlines -- bought airport servicing firm Swissport for 2.73 billion Swiss francs last July.

The price per share offer marks a premium of more than 20 percent to Zurich-based gategroup's closing price on Friday and sent the stock surging upward on Monday.

Shares were selling at 51.15 Swiss francs a piece in early afternoon trading, a 16 percent rise, as the Swiss stock exchange's main SMI index was slightly down.

The Bloomberg news agency called it that largest price jump for gategroup in seven years.

Gategroup chairman Andreas Schmid said HNA's offer "reflects the fair and adequate value and quality built by gategroup.

"It makes strategic sense that our company will become part of HNA", with the deal helping gategroup to expand "significantly" in Asia, Schmid added in a statement.

HNA pledged to retain gategroup's current management and keep it headquartered in Switzerland.

- Chinese acquisitions -

The deal would be the latest giant Chinese acquisition abroad.

State-owned China National Chemical Corp. (ChemChina) in February offered $43 billion for another Swiss company, pesticide and seed giant Syngenta, which will be the biggest-ever overseas acquisition by a Chinese firm if completed.

For its part, HNA in February said it would pay $6.0 billion for US tech firm Ingram Micro, which distributes products for Apple and Microsoft.

More recently, insurer Anbang proposed $6.5 billion to acquire luxury properties from US investment fund Blackstone, although it and its partners dropped a $14 billion takeover offer for Starwood Hotels and Resorts.

China has encouraged its domestic firms to look overseas for deals that improve their balance sheets and strengthen their operations, as the economy slows at home.

Based in southern city of Haikou, HNA also has interests in tourism, hotels, financial services and real estate.

"The acquisition will help address the growing need for catering as more and more people travel by air," Um Kyung A, a Seoul-based analyst at Shinyoung Securities, told Bloomberg News.

"In the long run, HNA can bring in some of the know-how into China and help improve the service quality of its airlines."

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