(Adds details on deal, background)
March 13 (Reuters) - Chinese conglomerate HNA Group will
sell its 25 percent stake in Hilton Grand Vacations Inc,
the timeshare business spun off last year from U.S. hotel chain
Hilton Worldwide, Hilton Grand said on Tuesday.
The sale is the latest attempt by HNA, an
aviation-to-financial services conglomerate, to restructure its
far-flung operations and raise cash by selling equity and prime
real estate assets.
Its restructuring drive also follows a $50 billion
acquisition spree over the past two years, which has sparked
scrutiny of its opaque ownership and use of leverage.
HNA's Kenneth Wong has resigned from Hilton Grand Vacations'
board, while the Chinese firm has asked Yasheng Huang, its
designated independent director at Hilton, to also step down.
HNA bought a 25 percent stake in hotel chain Hilton
Worldwide from Blackstone Group in 2016. Thanks to that
deal, the conglomerate built similar stakes in Hilton's two
spun-off units — Park Hotels & Resorts and Hilton Grand.
Park Hotels disclosed earlier this month that HNA planned to
sell some or all of its 25 percent stake in Park.
HNA will sell its Hilton Grand stake through a stock
offering of 24.8 million shares, which were worth around $1.1
billion at the stock's Tuesday closing price of $45.80. Hilton
Grand shares fell 1.7 percent to $45 in after-hours trading.
The offering is expected to be priced on Wednesday after
U.S. markets close, according to joint book-runners BofA Merrill
Lynch and JPMorgan.
Hilton Grand has an option to buy back up to 4.34 million
shares owned by HNA.
(Reporting by Arunima Banerjee and Ankit Ajmera in Bengaluru;
Additional reporting by Lance Tupper in New York; Editing by Sai
First Published: 2018-03-13 22:41:57
Updated 2018-03-13 23:12:25
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