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HNA Is Shedding Its Stake in Hilton Grand Vacations After 88% Gain

JohnPaul

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Thanks. That was interesting.
 

pedro47

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That is a very, very interesting article???
 

Panina

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Wonder is hgvc will buy it all back. Thanks for sharing, very interesting article.
 

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If it payed dividends I would consider buying some myself.
 

CalGalTraveler

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I wonder if HGVC benefits from the tax reform. If so, then a buyback would probably be in the cards - fastest way to line the pockets of the board and make the CEO appear like a hero because the stock price rises.
 

1Kflyerguy

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I do have a small position in both Hilton and HGVC and have done well with both. I think HGVC will have some benefit from the tax reform, but not as much as some companies. As for the HNA shares, i suspect they will be selling them onto the open market.
 

Mosescan

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I do have a small position in both Hilton and HGVC and have done well with both. I think HGVC will have some benefit from the tax reform, but not as much as some companies. As for the HNA shares, i suspect they will be selling them onto the open market.
Because HGVC is a new offering there is no dividend info yet. Are they paying a dividend?
 

1Kflyerguy

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Because HGVC is a new offering there is no dividend info yet. Are they paying a dividend?

No they do not pay any dividends. I have a mix of different stocks and funds. Some pay dividends and others are growth oriented, so no dividends.
 

1Kflyerguy

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If so, then a buyback would probably be in the cards - fastest way to line the pockets of the board and make the CEO appear like a hero because the stock price rises.

According to the news article on Seeking Alpha, HGVC has the right to buy back 4.35M shares, the other 20M shares will be placed on the market as secondary offering. Pretty much i expected, most of the HNA shares will be sold on the open market. HGVC management has better uses for their capital.
 

1Kflyerguy

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Curious what does this mean for HGVC?

I don't think members will notice any difference. HNA was obviously a large shareholder, but i don't believe they were active in the management of the business. HGVC may pend some funds buying back the smaller quantity of shares allowed, but otherwise i don't expect any big changes.
 

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I don't think members will notice any difference. HNA was obviously a large shareholder, but i don't believe they were active in the management of the business. HGVC may pend some funds buying back the smaller quantity of shares allowed, but otherwise i don't expect any big changes.
Could it mean that at least for some time that they would allow some sales to get past rofr which normally wouldn’t pass? Just guessing that if they buy back shares some of their overall budget will be used to share buy back and not something else.
 

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Could it mean that at least for some time that they would allow some sales to get past rofr which normally wouldn’t pass? Just guessing that if they buy back shares some of their overall budget will be used to share buy back and not something else.

I would assume that the budget for buying back shares vs buying back inventory come from two different sources? I’m no businessman but I don’t see one impacting the other. Just my 2 cents.
 

1Kflyerguy

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Could it mean that at least for some time that they would allow some sales to get past rofr which normally wouldn’t pass? Just guessing that if they buy back shares some of their overall budget will be used to share buy back and not something else.

I am doubtful this would have a direct impact on their ROFR process. During the most recent investor call, they spend much of the time discussing how as independent company they can allocate their capital more efficiently than previously while part of Hilton. Specifically they called out using their capital to develop new resorts and expand the inventory.

They did not address rofr in the most recent call, but during one of the calls last year they enthusiastically stated that buying back existing units was one of the best uses of capital, as it provides inventory to sell at very low cost.

My interpretation is that if buying the stock required them to change a basic strategy they have been promoting to wall street, they would not do buy back the stock. That would imply that they changed their opinion on the use of capital, and that now stock buyback was more important than creating inventory to sell. The agreement with HNA gives HGVc the right to buy the stock, it does not require them to buy the stock.

Just my opinion.
 
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