Hilton board approves spin-off of Park Hotels & Resorts and Grand Vacations
Staff Writer |
Hilton Worldwide Holdings board has approved the distribution to its shareholders of all of the outstanding shares of Park Hotels & Resorts.
Article continues below
Park Hotels & Resorts will become the holder of a portfolio of hotels and resorts previously held by Hilton. The board also approved spin-off of Hilton Grand Vacations, Hilton's timeshare business.
The spin-off transactions are expected to be completed on January 3, 2017, and Park and HGV will begin regular-way trading on the New York Stock Exchange (NYSE) under the ticker symbols PK and HGV, respectively, on January 4, 2017.
The Hilton board also approved a 1-for-3 reverse stock split for Hilton, which will become effective after market close on January 3, 2017.
The board has approved a distribution of one share of Park common stock for each five shares of Hilton common stock and one share of HGV common stock for each 10 shares of Hilton common stock held as of 5:00 p.m., Eastern Time on December 15, 2016, the record date for the distribution.
No fractional shares of Park or HGV common stock will be issued. Instead, the distribution agent will aggregate fractional shares of Park and HGV common stock and sell the whole shares in the open market.
The aggregate net cash proceeds of the sales will be ratably distributed to those shareholders who would otherwise have received fractional shares of Park and HGV common stock.
Hilton currently has approximately 990 million shares outstanding.
Based on this number and the respective distribution ratio for each spin-off, approximately 198 million shares of Park common stock and approximately 99 million shares of HGV common stock will be distributed to Hilton shareholders. ■
United Airlines is temporarily suspending service to New York City’s JFK Airport from October 29 but hopes to return once the Federal Aviation Administration is able to award the airline more takeoff and landing slots.