Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, March 19, 2021

Article Excerpt

HILTON GRAND VACATIONS INC., $39.13, symbol HGV on New York, is a leading global timeshare company with more than 325,000 owners at 62 properties in the U.S., Barbados, and Mexico. Hilton Grand Vacations generates value for investors through two key businesses: the sale and financing of vacation ownership intervals, usually of annual weekly stays; and resort management services, which generate fees. On January 3, 2017, Hilton Hotels (symbol HLT on New York) spun off Park Hotels & Resorts (symbol PK on New York) and Hilton Grand Vacations Inc. Hilton shareholders received one share of Park Hotels for every five HLT shares they held and one share of Hilton Grand for every 10 HLT shares. On March 10, 2021, Hilton Grand Vacations announced that it would pay $1.4 billion to buy Diamond Resorts International Inc. from Apollo Global Management. Diamond Resorts is a timeshare operator with 92 properties and almost 400,000 owners. The all-stock transaction will give New York-based private equity firm Apollo Global Management…