China’s HNA to buy $6.5bn Hilton stake From Blackstone
NEW YORK — China’s HNA Group agreed to acquire about 25% of Hilton Worldwide Holdings from Blackstone Group for about $6.5bn, easing the overhang that had hampered the hotel company’s stock since its December 2013 initial public offering. HNA, controlled by Chen Feng, will pay $26.25 a share in cash in a transaction that cuts Blackstone’s interest in Hilton to about 21%, the companies said on Monday. Hilton shares closed at $22.91 on Friday and were up 2.3% to $23.43 before midday New York time. "This investment is consistent with our strategy to enhance our global tourism business, and we look forward to working together on new initiatives that leverage our respective strengths, expertise and tourism platforms," Adam Tan, vice-chairman and chief executive officer at HNA Group, said. Chinese firms have been stepping up investments in hotel and travel businesses around the world as outbound travel surges and because yields from the underlying real estate typically are higher than fro...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.