Apollo makes offer for Hilton Grand Vacations

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Apollo Global Management Inc. made a first-round offer for Hilton Grand Vacations Inc. valuing the timeshare resort operator at about $40 per share, according to people familiar with the matter.

The Blackstone Group Inc. also bid for the Orlando, Florida-based company, said the people who asked to not be identified because the matter isn’t public.

Hilton Grand Vacations’ shares rose to their highest level since June 2018, jumping as high as 10.3%. The shares were up 6.1% to $34.65 at 1:07 p.m. in New York trading, giving the company a market value of about $3 billion.

Representatives for Apollo and Blackstone declined to comment. Hilton Grand Vacations didn’t respond to requests for comment.

Elliott Management Corp. has built a position in Hilton Grand Vacations and was advocating for a sale prior to the company putting itself on the block, people familiar with the matter said last month.

The company, with 55 resorts and more than 315,000 members, fell the most ever on Aug. 1 after lowering its forecast for earnings and sales, citing a lack of inventory in locations like Cabo San Lucas, Mexico and the Big Island of Hawaii.

Apollo bought timeshare operator Diamond Resorts International Inc. for $2.2 billion in 2016.

Bloomberg News