HNA Group Sells Hilton Grand Vacations Stake for $1.1 BillionBy
Shares were sold at 90% above what HNA paid last year
Deal comes as Chinese conglomerate sells assets to pay debts
HNA sold 22.3 million shares at $46.25 a share, or 1.6 percent below the stock’s latest closing price, according to a statement late Wednesday. Separately, HNA sold 2.5 million shares back to the Orlando, Florida-based timeshare company for $44.75 apiece. Overall, the shares were sold at 90 percent above what HNA originally paid.
The deal, which is scheduled to be completed March 19, represents the second Hilton spinoff that HNA is selling out of this month. The Chinese conglomerate disposes assets globally to repay debts after spending tens of billions dollars in a debt-fueled buying spree that included stakes in Deutsche Bank AG and skyscrapers in New York. HNA still owns about a quarter of Hilton Worldwide Holdings Inc., a stake valued at $6.7 billion.
HNA bought a quarter of Hilton Worldwide and two spinoffs -- Park Hotels & Resorts Inc. and Hilton Grand-- from Blackstone Group LP last year for about $6.5 billion.