Chinese conglomerate HNA Group is to sell its 25 percent stake in Hilton Grand Vacations, writes Reuters.

The sale will be made by offering 24.8 million shares of Hilton Grand for bids. The offering was valued at $1.1 billion based on Tuesday's closing price.

Hilton Grand is a spin-off of Hilton Worldwide that HNA acquired in 2016. HNA also owns Park Hotels & Resorts, another spin-off of Hilton Worldwide, which it has already said it will divest. In all three companies, HNA's ownership amounts to 25 percent.

The reason for HNA's sale is the need to reduce its debt burden. Over the past two years, HNA has gone through an acquisition spree, accumulating $50 billion in assets.

These have now led to liquidity problems and prompted Beijing to pull the company by the ear to start acting before potentially causing a banking crisis in China. HNA's purchase was made with loans from local banks.

Source: finwire