BEIJING—HNA Group Co. continues its sell-off. This time, it’s shares in Hilton Grand Vacations for $1.1 billion as the Chinese conglomerate releases assets in order to repay mounting debt.
The company’s leadership is also restructuring as Kenneth Wong has resigned from Hilton Grand Vacations’ board, while HNA has asked Yasheng Huang, its designated independent director at Hilton, to also step down, according to Reuters.
HNA’s 22.3 million shares in Hilton Grand Vacations sold for $46.25 a share, which is 1.6% below the stock’s closing price, according to a statement. In a separate transaction, HNA sold 2.5 million shares back to Hilton Grand Vacations for $44.75 apiece. In total, HNA’s shares were sold at 90% above what the company originally paid.
The sale is expected to be completed on March 19. HNA retains approximately a 25% stake in Hilton Worldwide Holdings Inc.
Earlier this month, HNA disposed of its stake in another Hilton spin-off, Park Hotels & Resorts, in an effort to restructure its overseas operations after a hospitality buying spree left the company in a risky financial situation. Among its recent divestments include a Sydney office tower and two plots of land in Hong Kong, according to Reuters.
