Starwood Hotels & Resorts Worldwide officials said the sale of their timeshare business to Interval Leisure Group has been delayed a month to avoid “unnecessary tax withholding.”
MIAMI & STAMFORD, Conn.--(BUSINESS WIRE)--Interval Leisure Group, Inc. (Nasdaq:IILG) (“ILG”) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) (“Starwood”) announced a brief delay in the planned closing of ILG’s acquisition of Starwood’s vacation ownership business, Vistana Signature Experiences (“Vistana”), while both companies work to avoid unnecessary tax withholding under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), as discussed in Starwood’s and ILG’s Current Reports on Form 8-K, which were filed with the U.S. Securities and Exchange Commission on April 19, 2016. The companies are working to finalize the procedures to identify which shareholders are properly subject to this withholding.
The acquisition, which will occur through a merger of Vistana with a wholly-owned subsidiary of ILG following the spin-off of Vistana from Starwood, was previously expected to close on April 30, 2016, and is now expected to close in May, subject to satisfaction or waiver of customary closing conditions. As announced on October 28, 2015, the Boards of Directors of ILG and Starwood unanimously approved the transaction. On April 20, 2016, ILG stockholders voted to approve the share issuance in connection with the merger at a special meeting of stockholders, and the merger has received all necessary anti-trust approvals.
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