Chinese shipping and aviation giant HNA Group has entered into an agreement to buy 25 percent of Hilton Worldwide Holdings from Blackstone Group. In the $6.5 billion transaction, HNA will pay just over $26 per share in cash, a 15 percent (increase/premium-which is better) over Hilton’s Friday closing price of just under $23 a share. The deal will reduce Blackstone’s holding to 21 percent and make HNA the largest stakeholder in the company. HNA agreed to hold onto the stake for two years, and will need board approval to purchase any more shares. Both HNA and Hilton want to make use of China’s expanding outbound tourism market. Earlier this year, Hilton announced around 70 percent of its hotel properties would be spun off into a publicly-traded REIT. The move splits Hilton into three district entities. HNA will own approximately 25 percent of all three companies upon the closing, which is expected to take place in the first quarter of 2017.
