Casino cruise ship operator and Philippine casino investor Genting Hong Kong Ltd announced on Friday a deal to sell a 2.19-percent stake in Norwegian Cruise Line Holdings Ltd, a business listed in Nasdaq in New York. Genting Hong Kong is selling a total of 5 million shares for approximately US$270.1 million, after deduction of the relevant estimated expenses, it said in a filing.
The Hong Kong-listed company said it expects to book a gain of approximately US$57.4 million, representing the difference between the expected proceeds from the disposal and the carrying value of the shares. The sale will be done via Genting Hong Kong’s wholly-owned subsidiary Star NCLC Holdings Ltd.
The company said that the proceeds from the disposal “will be used as general working capital and capital expenditure for the group and/or to fund new investments, should suitable opportunities arise”.
Upon completion of the exercise – expected for Monday – Genting Hong Kong will still control a stake of approximately 5.64 percent in Norwegian Cruise Line. The stake will continue to be labelled as an “available-for-sale investment”, the firm said. Norwegian Cruise Line has operations around the globe, including Asia.
Genting Hong Kong sold in August a 3.29-percent stake in Norwegian Cruise Line for US$409.1 million, with the company recording a net gain of US$90.1 million.
Genting Hong Kong – a subsidiary of Malaysian conglomerate Genting Bhd – has been accelerating expansion plans for its own cruise business and has developed a three-brand portfolio of cruise lines serving different parts of the market: Crystal Cruises for what it terms the ultra-luxury segment; Dream Cruises for what it describes as the premium segment; and Star Cruises for what it defines as the “contemporary” segment.
Feb 16, 2018Due to the Chinese New Year holiday, the GGRAsia team will be off between February 16 and 19. We will be back on February 20. We wish all our readers a prosperous Year of the Dog!
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