- Joined
- Jun 3, 2018
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- Resorts Owned
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HGVC: Flamingo & Anderson Ocean Club
Vacation Village: Woodstone at Massanutten and Grandview (RCI Points) & the Colonies
HGV has a huge majority shareholder (Apollo) that is really there for just return on investment.
This is concerning news to me. When did Apollo become a majority shareholder?
According to reporting at the time the deal went down, the HGVC owners previous to the merger retained 72% of ownership.
The required ownership threshold for Apollo (and other DRI investors) to control two board seats was 15%
"Upon closing, Hilton Grand Vacations' management team will continue in their current roles and the company's board will be upsized to nine members from seven. The selling shareholders will have the right to appoint two directors as long as their equity ownership in the company remains at or above 15% of the outstanding stock at closing and one director as long as their equity ownership remains at or above 10%."
I have no doubt Apollo has a lot of leverage in this (and it is about making money for everyone) ... but if Apollo now owns a majority this really was DRI taking over HGVC.