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China’s HNA to buy Hilton stake for $6.5bn

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China’s HNA Group has unveiled plans to acquire about 25 per cent of Hilton Worldwide Holdings stake from Blackstone Group for $6.5 billion, said a report.

According to a report in Wall Street Journal, HNA will pay $26.25 a share in cash for the stake, which will reduce Blackstone’s interest in Hilton to approximately 21 per cent.

Hilton shares edged up 1.3 per cent to $23.23 in morning trading.

The move comes as Hilton is expected to later this year split into three distinct entities, the result of a plan to spin off a chunk of its hotels into a real-estate investment trust and to separate its timeshare business.

The HNA-Blackstone transaction is expected to close in the first quarter of 2017, and HNA will own approximately 25 per cent of all three companies.

HNA and Hilton both want to tap China’s fast growing outbound tourism market. It will be a long-term investment for HNA, now Hilton’s largest shareholder after Blackstone reduced its stake.

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