HNA shedding its stake in Hilton Grand Vacations after 88pc gain
HNA Group is selling its 25 per cent stake in Hilton Grand Vacations as the Chinese conglomerate continues to shed its holdings to repay debts.
HNA put its 24,750,000 shares on sale Tuesday, according to a Hilton Grand Vacations statement, after Hilton agreed to remove a lock-up provision that had barred HNA from selling before 2019. At the close of trading in New York, the stock had gained 88 per cent from the price HNA paid about a year ago.
HNA started as a regional airline before embarking on a debt-fuelled buying spree around the world. It has already cut its stake in Deutsche Bank AG and sold properties in London, Sydney, and Hong Kong. The company sold its entire stake in Park Hotels and Resorts last week and is still shopping 245 Park Ave., a New York City office tower it bought last year for US$2.21 billion, and a 29 per cent stake in NH Hotel Group NA, among other assets.
HNA paid US$6.5 billion in 2017 to acquire shares of Hilton Worldwide Holdings and two spin-offs, Hilton Grand Vacations and Park Hotels. Last March, the Chinese company paid US$24.32 per share to buy its stake in Hilton Grand Vacations.
The agreement announced Tuesday gives Hilton Grand Vacations the right to repurchase up to 4,340,000 shares in a secondary offering at the same price paid by underwriters of HNA’s offering.
David Chen, a spokesman for HNA Group, didn’t respond to an email seeking comment.