Hilton Group returns £4.2 billion to shareholders, changes name |
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Thu, 23 Feb 2006 13:40
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LONDON: Britain's Hilton Group Plc., which owns the Ladbrokes betting shop chain, is returning up to 4.2 billion pounds to shareholders after completing the sale of its hotel business to Hilton Hotels Corporation of the U.S.
The cash payment will be equal to 240 pence a share, which will include the final dividend of 6.6 pence a share, the company said.
The company had sold the hotel business for 3.5 billion pounds as it wanted to focus on its betting business. The deal reunited the North American and British-based Hilton brands after the U.K. group separated from the American firm in 1960. The sale formalities would be completed Thursday, the company said.
The British company will now be known as Ladbrokes Plc.
The payout announcement coincided with the company reporting its 2005 results, which showed better than expected growth. The company's profit before tax and exceptionals rose 9.9 per cent to 413.9 million pounds from 377 million pounds in 2004. Revenues grew 14 per cent to 11.5 billion pounds.
The company is upbeat about 2006. It said the summer football world cup and England's defence of the Ashes in Australia in November will give a great impetus to the performance.
Chris Bell, chief executive, said the group will focus on Europe and Asia, in particular China. It is also reviewing its policy of not accepting online bets from the United States, where the legality of online gaming is unclear.
The company has been approached by venture capitalists for a complete takeover, but Bell said he would keep it as a standalone business.
The company's shares closed Wednesday at 382.75 pence, valuing the company at 6.1 billion pounds.
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