Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, September 6, 2019

Article Excerpt

HILTON GRAND VACATIONS INC., $33.40, symbol HGV on New York, develops, markets and operates 57 timeshare properties, comprising 9,166 units. It has 310,000 timeshare owners. Hilton Grand Vacations makes money in two ways: By selling and financing vacation ownership intervals—usually weekly stays—and from its resort management 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. Hilton Grand Vacations is now exploring strategic alternatives to boost shareholder value, including a possible sale. As part of the process, it has hired an investment bank to provide financial advice. The decision follows news that Apollo Global Management (symbol APO on New York) made a bid for the timeshare operator in August 2019. Apollo already owns timeshare operator Diamond Resorts Holdings LLC. Because Hilton…

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