MIAMI & STAMFORD, Conn — Miami-based Interval Leisure Group, Inc. (ILG) and Starwood Hotels & Resorts Worldwide, announced what they hope will be a brief delay in the planned closing of ILG’s acquisition of Starwood’s vacation ownership business, Vistana Signature Experiences, on April 29.
ILG shareholders approved the $1.5 billion U.S. acquisition of Vistana on April 20, but delayed the planned closing to avoid unnecessary tax withholdings under the Foreign Investment in Real Property Act of 1980. Both companies are currently examining which shareholders will be subject to the withholding. The deal is expected to be wrapped up sometime in May.
The agreement says that Vistana will merge with ILG after it has broken off from Starwood. However, Starwood stockholders will retain a 55-per-cent stake in Vistana. The Boards of Directors of ILG and Starwood unanimously approved the deal on October 28, 2015.
Vistana has 22 timeshare resorts with 220,000 timeshare owners. After the deal closes, ILG will be able to use the Westin and Sheraton brands in vacation ownership. Existing timeshare owners will be able to continue to use the company’s loyalty program — Starwood Preferred Guest.
The deal is not expected to have any impact on Starwood’s merger with Marriott.