HGV Adopts One-Year Shareholder Rights Plan

[GT75]

HGV announced that it has adopted a shareholder rights plan to protect shareholder interest and maximize value for all shareholders. I am hoping that some of the TUG experts will explain and what effect it has on the possible sale of HGV.

 

[tombanjo]

Basically - since the share value has significantly decreased, it puts an obstacle in the path of someone buying up a large number of shares to take control. It does not prevent a take over, but means that just buying up a large number of undervalued shares will not let a groups take control.

 

[CalGalTraveler]

Is this the same as a poison pill provision to prevent hostile takeover?

 

[tombanjo]

Basically , yes, if someone buys 10-20% of the stock, the remaining stock owners have the ability to buy more stock at "half price" and the 10-20% owner cannot.

 

[CalGalTraveler]

Thanks. So this is a good thing because it prevents Apollo/Diamond from attempting a hostile takeover. They may still go forward but must be with the consent of the board and shareholders.

 

[giowop]

And to review, is there anyone that thinks an Apollo takeover will benefit HGV?

I’m assuming that answer is still a resounding NO?


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[dayooper]

And to review, is there anyone that thinks an Apollo takeover will benefit HGV?

I’m assuming that answer is still a resounding NO?


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In the words of Uncle Buck:

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[tombanjo]

They will have their own problems and might not want HGVC's issues on top of theirs.

 

[Tamaradarann]

They will have their own problems and might not want HGVC's issues on top of theirs.

It view of the travel situation in the world the last thing I'd want to buy would be a travel related company unless the price was really low.

 

[brp]

It view of the travel situation in the world the last thing I'd want to buy would be a travel related company unless the price was really low.

Or, unless the price was low enough (even if not really low) and you understood that this will pass.

Cheers.

 

[ocdb8r]

They will have their own problems and might not want HGVC's issues on top of theirs.

It view of the travel situation in the world the last thing I'd want to buy would be a travel related company unless the price was really low.

Apollo was on CNBC last week, and while they indicated they were being cautious and protecting their existing investments, they also said they have "a lot of dry powder" (a.k.a. cash on hand) that they would like to deploy opportunistically. They also cited leisure of one of the key areas they are looking toward. Given their interest prior to the pandemic, I have no doubt they continue to have interest in HGVC. As far as the travel industry, timeshares will be one of the first to bounce back.

A short synopsis is here: https://www.cnbc.com/2020/04/13/leo...own-us-the-benefit-of-apollos-strategies.html