Nov 6 (Reuters) - Vacation property operator Hilton Grand Vacations (HGV.N) said on Monday it would buy peer Bluegreen Vacations (BVH.N) in a $1.5 billion deal including debt, to get more customers for its timeshares and expand its offerings.
Under the deal terms, shareholders of Bluegreen Vacations will get $75 in cash for each share held, more than double the stock's closing price on Friday, valuing the company at $1.28 billion.
Both Hilton Grand and Bluegreen Vacations market and sell timeshares, or vacation ownership interests - a model where multiple owners have exclusive use of a property for a period of time.
Shares of Bluegreen Vacations more than doubled to $73.1 in morning trade, while shares of Hilton Grand were down 8.7%.
Credit Suisse Securities and Wells Fargo are acting as financial advisors to Bluegreen Vacations, and BofA Securities is acting as the exclusive financial advisor for Hilton Grand Vacations.
Persons:
Hilton, Aatreyee Dasgupta, Kannaki, Abhinav Parmar, Shailesh Kuber
Organizations:
Hilton, Truist Securities, Hilton Grand, U.S ., Bass Pro, Credit Suisse Securities, BofA Securities, Thomson
Locations:
United States, U.S, U.S . East Coast, Wells, Bengaluru