Hilton Group plc announces that it has signed a conditional agreement for the sale of its…
Hilton Group plc announces that it has signed a conditional agreement for the sale of its hotels and leisure division, Hilton International, to Hilton Hotels Corporation (“HHC”) for a cash consideration of approximately £3.3 billion which, when added to the proceeds of the recent sale of 16 UK Hilton International hotels, realises a total of approximately £3.7 billion for its hotels and related assets.
Upon completion, it is planned that Hilton Group plc will be renamed Ladbrokes plc. Sir Ian Robinson will continue as Chairman, supported by the existing Non Executive Directors, other than Stephen Bollenbach who has resigned as a director. Christopher Bell will become the Chief Executive and John O’Reilly and Alan Ross will join the Board as Executive Directors with effect from Completion. Rosemary Thorne has been appointed as Finance Director with effect from Completion.
It is expected that a substantial amount of cash will be returned to shareholders early in the second quarter of 2006 following a review of the appropriate capital structure for the new Ladbrokes plc.
Commenting on the disposal, Sir Ian Robinson, Hilton Group Chairman said: “We believe this transaction delivers significant shareholder value. The Board is fully committed to Ladbrokes, which it believes is a strong and valuable business which will be well placed to deliver growth and good returns.”
Stephen Bollenbach, Chairman of Hilton Hotels Corporation, commented: “This transaction represents the final and logical step in a process that began in 1997 with the signing of a strategic alliance between HHC and Hilton International as a global lodging industry leader. Hilton International has an experienced and talented team of professionals with unsurpassed knowledge of international markets, and we are excited about the role they and our
existing team will play in the future growth and prosperity of our company.”
David Michels, Chief Executive of Hilton Group plc, said: “This is a good deal for our shareholders and will offer new opportunities for the 70,000 employees currently working in Hilton International around the globe. I am very proud of the Hilton brand, which has consistently been acknowledged as one of the world’s leading brands. I
fully expect the enlarged company to grow and our customers can look forward to enjoying even more opportunities as a result of the strengths of the unified businesses.”
Christopher Bell, Chief Executive of new Ladbrokes plc, said: “Ladbrokes has a clear business strategy that has delivered strong results in recent years and leaves us well placed to prosper as a stand alone company. Our key assets – brand leadership, highly experienced management and an ability to innovate put us in a strong position to succeed in the international betting and gaming market place.”
Following completion (expected to be in the first quarter of 2006), Ian Carter (Chief Executive of Hilton International) will take up the role of Executive Vice President and CEO of Hilton International at HHC. In addition, at HHC’s request, David Michels and Brian Wallace have agreed to transfer to the enlarged company to assist in the transition process.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
