NEW YORK, Oct. 24 (Xinhua) -- China's HNA Group announced Monday that it will acquire about 25 percent stake in Hilton Worldwide Holdings Inc. from Blackstone Group LP for 6.5 billion U.S. dollars.
HNA Group, a Chinese conglomerate headquartered in Haikou in south China's Hainan province, will buy the stake for 26.25 U.S. dollars per share in cash, a 15 percent premium to Hilton's closing price of 22.91 U.S. dollars on Friday. The deal, which is expected to close in the first quarter of 2017, will reduce Blackstone's interest in Hilton to roughly 21 percent.
The move comes when Hilton's planned spin-offs of Park Hotels & Resorts and Hilton Grand Vacations are under way. According to the terms, HNA will own approximately 25 percent of all three companies when the spin-offs are completed at the end of this year.
The agreement also allows HNA to appoint two directors to Hilton's Board of Directors, bringing the total to ten members.
"We believe this mutually beneficial relationship will open new opportunities for our brands and guests around the world, particularly in light of HNA's strong position in the fast-growing Chinese travel and tourism market, the largest outbound travel and tourism market in the world," said Christopher J. Nassetta, president and CEO of Hilton, in a statement on Monday.
Hilton's shares gained 0.09 percent at 22.94 U.S. dollars after Monday' s closing bell, while Blackstone inched up 0.72 percent at 24.79 U.S. dollars. Enditem
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