China's HNA to buy 25 percent stake in Hilton for $6.5 billion

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HLT.N) from biggest shareholder Blackstone Group LP (BX.N) for $6.5 billion.

Hilton’s shares were up 6.3 percent at $24.35 in premarket trading on Monday.

HNA will buy the stake for $26.25 per share, representing a premium of 14.6 percent to Hilton’s closing price on Friday and valuing the hotel company at about $26 billion.

Blackstone’s holding in Hilton will be reduced to 21 percent after the deal closes in the first quarter of 2017, the companies said.

Hilton Worldwide’s brands include Conrad Hotels & Resorts, Curio and Double Tree as well as Hilton.

The deal comes after China’s Anbang Insurance Group Co [ANBANG.UL] abandoned its pursuit of Hilton rival Starwood Hotels & Resorts Worldwide Inc in April following a bidding war with Marriott International Inc (MAR.O).

Marriott completed the acquisition of Starwood in September to create the world’s biggest hotel chain. (reut.rs/2exdDpz)

Evercore is the financial adviser to Hilton, while JPMorgan advised HNA Group.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)

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