HNA buys 25% Hilton stake for USD 6.5 billion
HNA will acquire a 25% equity interest in Hilton from affiliates of Blackstone, establishing a long-term strategic investment in Hilton and Hilton’s spin-off plans.
Hilton Worldwide, HNA Group and Blackstone announced that HNA will acquire an approximate 25% equity interest in Hilton from affiliates of Blackstone, establishing a long-term strategic investment in Hilton and Hilton’s planned spin-offs of Park Hotels & Resorts and Hilton Grand Vacations.
The transaction is valued at approximately USD 6.5 billion, or USD 26.25 per share in cash, reducing Blackstone’s interest in Hilton to approximately 21%. The transaction is expected to close in the first quarter of 2017. Following Hilton’s previously announced spin-offs of Park and HGV, which are expected to occur on or about the end of the year, HNA will own approximately 25% of all three companies.
HNA will appoint two directors (one HNA member and one independent member) to Hilton’s board of Directors, bringing the total to ten members. Blackstone will continue to have two seats on Hilton’s Board, including Jon Gray who will remain chairman.
Read original article