Jun. 2 at 10:21 PM
Hilton Grand Vacations shares fell in after-hours trading Tuesday after the company announced a secondary offering of 5 million shares by affiliates of Apollo Global Management. Underwriters were also granted a 30-day option to purchase up to 750,000 additional shares from the selling shareholders.
The vacation ownership company will not issue any new shares or receive proceeds from the sale, as the transaction involves existing shares held by Apollo affiliates. To help offset part of the increased share supply, HGV authorized a concurrent repurchase of up to 750,000 shares, valued at up to
$40 million, under its existing buyback program, contingent on the offering closing.
Wells Fargo Securities is serving as the lead book-running manager. Secondary offerings by major shareholders can pressure stocks in the short term as more shares become available to the market, although the company’s planned repurchase may help mitigate some of that impact.
$HGV $APO