Hilton Worldwide Holdings Board Approves Spin Off of Park

Hilton Worldwide Holdings  said on Monday its board approved the spin off of Park Hotels and Resorts and Hilton Grand Vacations timeshare program, and a one-for-three stock split effective at the end of the day on Jan. 3.

Park will begin trading under the ticket PK and Hilton Grand Vacations will be under HGV starting on Jan. 4, the company said in a statement. Hilton will have an investor day on Dec. 8 with more information about the spin off and stock split.

Hilton shareholders will receive one share of Park stock for every five shares of Hilton stock and one share of HGV for each 10 shares of Hilton stock held as of Dec. 15. No fractional shares of Park or HGV will be issued, instead, fractional shares of Park and HGV common stock will be aggregated and sold as whole shares on the open market. The aggregate net cash proceeds of the sales will be ratably distributed to those shareholders who would otherwise have received fractional shares of Park and HGV common stock.

Based on the distribution ratio and Hilton’s 990 million outstanding shares, about 198 million shares of Park stock and 99 million shares of HGV stock will be distributed to Hilton shareholders.

The board also approved a one-for-three stock split in which every three shares of Hilton will be combined into one, reducing the number of outstanding shares to about 330 million. Again, no fractional shares will be issued.

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