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Report: HNA weighs sale of stake in Hilton's timeshare spinoff

HNA Group Co. Ltd. is considering a full or partial sale of its 25% stake in Hilton Worldwide Holdings Inc.'s timeshare spinoff Hilton Grand Vacations Inc., The Wall Street Journal reported, citing people with knowledge of the matter.

The Chinese conglomerate became a major shareholder in Hilton Grand Vacations in 2017. HNA's stake in Hilton Grand Vacations is worth roughly US$1.2 billion. Before accounting for leverage, HNA Group's profit could come to almost US$570 million, the publication noted.

The unnamed sources told the WSJ that HNA Group would divest its stake on the open market and not directly to a buyer. The company could make an announcement as soon as the week ending March 16, although its plans might still change, the sources added.

An affiliate of HNA Tourism Group Co. Ltd., another HNA Group unit, recently completed the sale of its stake in hotel real estate investment trust Park Hotels & Resorts Inc., Hilton Worldwide's hotel real estate spinoff.

Separately, Reuters reported that HNA Group unit HNA Infrastructure Investment Group Co. Ltd. is looking to sell its property and logistics units in China's Hainan resort island for a combined price of roughly 1.94 billion yuan to real estate developer and investor Sunac China Holdings Ltd. The deal, expected to result in a gain of more than 437 million yuan, should help streamline HNA Infrastructure's asset structure while consolidating its resources, Reuters reported, citing a company filing.

As of March 9, US$1 was equivalent to about 6.33 Chinese yuan.