InterContinental Hotels Group ("IHG") [LON:IHG, NYSE:IHG (ADRs)] today announces that the owners of Avendra, LLC ("Avendra"), a North American hospitality procurement services provider, have reached a binding agreement to sell Avendra to Aramark (NYSE:ARMK) for $1,350 million.

IHG was a founding shareholder in Avendra and has a 6.3% minority interest with a book value of $2.1m, but has not been an active user of its services in recent years. On completion of the transaction IHG expects to receive gross cash proceeds of approximately $74m, with estimated post tax proceeds of $44m. In addition, IHG will no longer receive an annual dividend distribution from Avendra, this has averaged $3.5m over the past two years.

The transaction is subject to Antitrust clearance and satisfaction of other customary closing conditions. The parties expect the transaction to close before year-end.

Ends

For further information please contact:

Catherine Dolton
investors@ihg.com
+44 (0) 1895 512 176

Mark Debenham
mark.debenham@ihg.com
+44 (0) 1895 512 097

IHG - Intercontinental Hotels Group plc published this content on 16 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 October 2017 15:09:07 UTC.

Original documenthttps://www.ihgplc.com/en/news-and-media/news-releases/2017/ihg-minority-interest-in-avendra-to-be-sold

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