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ILG considering merger: Reuters
Posted on Friday, 16 June 2017 13:14
ILG, a vacation industry-focused provider of membership and leisure services, is in discussions over a potential merger with another company, according to Reuters.

Citing people in the know, the news provider said the talks are at an early stage and Marriott Vacations Worldwide and Hilton Grand Vacations are potential candidates for a combination.

The discussions come following pressure from activist shareholder FrontFour Capital, which holds a 2.0 per cent stake in the business and said if the company’s options are not reviewed it could take action at the 2018 annual general meeting, the sources noted.

They added that Moelis & Co has been appointed to advise ILG on the transaction.

Reuters’ sources did not wish to be identified as the discussions are confidential and none of the companies have commented on the report.

Miami-headquartered ILG is an operator of membership programmes and vacation timeshare properties for holidaymakers, with an exchange network totalling more than 3,000 resorts in over 80 nations.

The company has offices across 15 countries.

It posted total revenue of USD 452.00 million in the first quarter of 2017, up from USD 186.00 million over the opening three months of last year.

Net income for the period amounted to USD 45.00 million, compared to the USD 23.00 million generated in Q1 2016.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 171 deals targeting travel arrangement and reservation services providers announced worldwide since the beginning of 2017.

The most valuable of these was worth USD 554.77 million and involved Yoshimura Holdings selling its 9.2 per cent stake in Japan-based online travel agency Evolable Asia.

Others in the sector to have been targeted during the year to date include Yunnan Tourism, Abercrombie & Kent Group of Companies and Travelopia Holdings.

© Zephus Ltd