InterContinental Hotels to make $74m from Avendra sale
InterContinental Hotels said on Monday that the owners of Avendra, a North American hospitality procurement services provider in which it has a 6.3% minority interest, have reached a binding agreement to sell the company to Aramark for $1.35bn.
FTSE 100
8,139.83
17:09 26/04/24
FTSE 350
4,470.09
16:59 26/04/24
FTSE All-Share
4,423.59
17:14 26/04/24
InterContinental Hotels Group
8,034.00p
16:40 26/04/24
Travel & Leisure
7,572.38
16:59 26/04/24
IHG was a founding shareholder in Avendra and its stake’s book value was $2.1m. However, it has not been an active user of its services in recent years.
On completion of the deal, IHG expects to receive gross cash proceeds of around $74m, with estimated post tax proceeds of $44m. In addition, it will no longer receive an annual dividend distribution from Avendra, which has averaged $3.5m over the past two years.
The transaction - expected to close before the year-end - is subject to antitrust clearance and the satisfaction of other customary closing conditions.
At 1505 BST ,the shares were down 0.2% to 4,093p.