(Bloomberg) -- HNA Group is selling its 25 percent stake in Hilton Grand Vacations Inc. as the Chinese conglomerate continues to shed its holdings to repay debts.
HNA put its 24,750,000 shares on sale Tuesday, according to a Hilton Grand Vacations statement, after Hilton agreed to remove a lockup provision that had barred HNA from selling before 2019. At the close of trading in New York, the stock had gained 88 percent from the price HNA paid about a year ago.
HNA started as a regional airline before embarking on a debt-fueled buying spree around the world. It has already cut its stake in Deutsche Bank AG and sold properties in London, Sydney, and Hong Kong. The company sold its entire stake in Park Hotels and Resorts Inc. last week and is still shopping 245 Park Ave., a New York City office tower it bought last year for $2.21 billion, and a 29 percent stake in NH Hotel Group NA, among other assets.
HNA paid $6.5 billion in 2017 to acquire shares of Hilton Worldwide Holdings Inc. and two spinoffs, Hilton Grand Vacations and Park Hotels. Last March, the Chinese company paid $24.32 per share to buy its stake in Hilton Grand Vacations.
The agreement announced Tuesday gives Hilton Grand Vacations the right to repurchase up to 4,340,000 shares in a secondary offering at the same price paid by underwriters of HNA’s offering.
David Chen, a spokesman for HNA Group, didn’t respond to an email seeking comment.
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