Hilton Group shareholders are to receive a massive £4.2b payout following the completion of Hilton Corporation’s acquisition of the business expected later today.
Hilton Group is selling its hotels division to American owned Hilton Corporation in a deal valued at £3.3b.
The dividend will be paid within the next few months, and Hilton Group is to rename itself Ladbrokes.
Once the deal completes, group chief executive David Michels and group finance director Brian Wallace will transfer to Hilton Corporation to take up a three-year multi-million pound consultancy role aimed at integrating UK Hilton’s 400-plus hotels with their American counterparts.
Michels said: “The sale of Hilton is commercially sound in all respects and I believe that real value has been created for our shareholders.”
Turnover at Hilton International’s hotels in the year to 31 December 2005 was £2.93b (2004: £2.73b) and pre-tax profit hit £182.3m (2004: £152.1m).
Group pre-tax profit, including the Ladbrokes betting business, was £413.9m (£376.7m) from turnover of £11.5b (2004: £10.13b).
Hilton rejects £3.7b offer for Ladbrokes >>
Hilton Group shareholders back £3.3b sale of hotels arm >>
Hilton International sold to US cousin for £3.3b >>
By Chris Druce
Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.
Sudoku
Join the craze and play Sudoku online! |