HNA Group Co is seeking to sell some or all of its $6.5 billion (€5.3 billion) stake in Hilton Worldwide Holdings, part of a global asset purge by the debt-laden Chinese conglomerate that owns a majority stake in Irish aircraft leasing group Avolon.
HNA disclosed its intention to sell the hotel company shares in a regulatory filing on Thursday. The firm owns 26 per cent of Hilton’s stock. Hilton shares were up 0.9 per cent to $78.75 in morning trading in New York.
Hilton spokeswoman Meg Ryan declined to comment because the filing was from HNA, not the hotel group.
HNA has been under pressure to reverse a multibillion-dollar buying spree since the Chinese government last year started to crack down on overseas dealmaking. The firm has since reduced its stake in Deutsche Bank AG and sold properties in New York, London, Sydney and Hong Kong.
HNA paid $6.5 billion in 2017 to acquire from Blackstone Group LP shares of Hilton Worldwide. If it is able to sell its Hilton Worldwide stake at current prices, the conglomerate stands to make a paper profit just shy of $2.35 billion. – Bloomberg
