Hilton Worldwide Holdings Inc (NYSE:HLT) had a quiet session yesterday as it ended the last session with a minor loss of 1.36%. It opened with a small gap down and after spending the entire session in a small range, it closed exactly where it had opened earlier, creating a Doji candlestick and implying indecision.
Blackstone, world’s largest manager of alternative assets like real estate, is reducing stake in Hilton Worldwide Holdings Inc (NYSE:HLT) to less than 50% as it sells 90 million shares of the world’s biggest hotel operator. The stake of Blackstone will come down to 46% after the sale but the underwriters retain the option to sell an additional 13.5 million shares, which if sold, will drag the stake further down to 44.7% from the current 55.2%.
Hilton Worldwide Holdings Inc (NYSE:HLT) was listed in the exchange at $20 in December 2013 by Blackstone, who was paring its stake since that very month. The hotel operator was acquired in 2007 and was further funded by Blackstone with additional cash, coupled with debt restructuring in 2010. All these steps have produced a bonanza for Blackstone as the equity value more than tripled to make it the most profitable private equity investment on record.
Hilton Worldwide Holdings Inc (NYSE:HLT) is not offering any shares in the sale, which is expected to yield about $2.7 billion without the additional shares being sold, and hence will not receive any proceeds. The offering is being managed by Deutsche Bank AG (USA) (NYSE:DB), Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C).
Technically, the stock remains in an uptrend as it has recently taken support from the lower channel boundary as shown on the chart attached. Only a break below that channel may push the stock down to test the support area in the band of $27.70-$28.50.