Hilton has announced its intention to repurchase 10 million shares from HNA Group.
An HNA affiliate has commenced a secondary offering of more than 63 million shares. The underwriters will have a 30-day option to purchase up to an additional 9.5 million shares.
Hilton has the right to increase its number of shares repurchased up to 16.5 million shares. Pricing for the offering has not been set and is conditional on the closing of the offering.
The Chinese tourism conglomerate and Hilton’s largest stakeholder HNA Group announced its intention to sell some or all of its $6.5b (£4.6m) stake in Hilton last week. HNA bought into the company just over a year ago with its acquisition of the holding previously held by US private equity company Blackstone.
Earlier this year, HNA sold the shares it bought in Park Hotels and Hilton Grand Vacations through its Hilton acquisition. It is believed that the heavily indebted Chinese group is looking to offload a number of assets in an attempt to balance its books.
Hilton has more than 5,200 hotels worldwide operating under 14 brands, including Waldorf Astoria, Conrad, Hilton Hotels & Resorts, Doubletree by Hilton and the Tapestry Collection.