Hilton stockholders today overwhelmingly
approved selling the company to the private equity firm, the
Blackstone Group.
At a special
meeting in Beverly Hills, Calif., more than 98% of the shares that
voted were cast in favor of the $26 billion buyout, which marks the
largest acquisition ever of a hotel company.
Blackstone will pay
$20 billion in cash for Hilton and assume $6 billion in debt.
Stockholders will receive $47.50 per share, which is 40% higher
than the stock price the day before the acquisition was announced
July 3.
Hilton expects the
transaction to be completed by the end of October. All required
regulatory approvals have been obtained except a clearance from the
European Commission, the company said.
The sale will give
Blackstone 15 hotels brands with 560,000 rooms, making it the
world's largest hotel operator by number of beds, surpassing
InterContinental Hotels Group, according to Paris-based MKG
Consulting.
Hilton owns,
manages or franchises a hotel portfolio of some of the best-known
brands, including Hilton, Conrad Hotels & Resorts, Doubletree,
Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites,
Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by
Hilton and The Waldorf-Astoria Collection.
Blackstone has
indicated it does not plan any "significant disposition" of Hilton
assets.
To
contact the reporter who wrote this article, send e-mail to Jeri
Clausing at [email protected].