An affiliate of HNA Tourism Group Co. Ltd. launched an underwritten secondary offering for its roughly 25% stake in Hilton Grand Vacations Inc.
HNA Tourism, a unit of Chinese conglomerate HNA Capital Group Co. Ltd., is offering 24,750,000 shares and granted Hilton Grand the option to buy back up to 4,340,000 of its shares through a private transaction, with the per-share price equal to what the underwriters will pay for the shares held by the seller.
HNA Tourism's announcement follows a recent report that HNA Tourism was considering a full or partial sale of its stake in the Hilton Worldwide Holdings Inc. spinoff. The offering, which is worth approximately $1.13 billion based on Hilton Grand's March 13 closing price of $45.80 per share, follows HNA Tourism's sale of its $1.38 billion interest in Park Hotels & Resorts Inc., another Hilton Worldwide spinoff.
The global timeshare company noted in a release it is not offering any of its stock in HNA Tourism's offering and will not receive any proceeds from the sale. Hilton Grand said it will retire any shares that it buys back.
BofA Merrill Lynch and J.P. Morgan are the offering's joint book-running managers and underwriter representatives. UBS Investment Bank, Goldman Sachs & Co. LLC, Deutsche Bank Securities, Credit Suisse and SunTrust Robinson Humphrey also serve as joint book-running managers and underwriters.
