Following on from our report on the 27th April, the proposed acquisition of Vistana Signature Experiences has been delayed. Both parties, due to unnecessary taxes under Foreign Investment in Real Property Tax (FIRPTA) regulations have put off the takeover, which was meant to go through on The 30th April. The deal that was supposedly to be concluded has been postponed until May to determine which shareholders are subject to FIRPTA. The deal has already been approved by both companies shareholders, and all of the anti-trust approvals have been passed meaning at the close of deal Starwood stakeholders will maintain a 55 percent stake in Vistana.
There is another Starwood – Marriott deal on the table pending approval in Europe, Mexico, Saudi Arabia and China, which is expected to close around the middle of the 2016; this was announced in November 2015. At the moment the delay of ILG’s multibillion takeover of Vistana should not impact on this decision as long as it goes through as expected previous to the closure of Marriott take over of the Starwood Hotels.
Vistana is due to join one of ILG’s entire subsidiaries, bringing with it 22 resorts comprising of around 220,000 timeshare owners whom will soon have the rights to use Westin and Sheraton brands and the existing timeshare owners will continue to enjoy the Preferred Guest program provided by Starwood.
Posted on: May 3, 2016
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 0203 519 3808 or email: info@TimeshareConsumerAssociation.org.uk