GGRAsia – Genting HK drops plan to acquire aircraft

Genting HK drops plan to acquire aircraft

Mar 28, 2016 Newsdesk Industry Talk, Latest News, Rest of Asia

Genting Hong Kong Ltd says a deal between connected companies to purchase an Airbus ACJ319 aircraft (a type pictured in a file photograph) will not now go ahead.

The purchaser’s conditions could not be fulfilled before the final delivery date, Genting Hong Kong said in a filing to the Hong Kong Stock Exchange.

“The board considers that the termination of the agreement does not have any material adverse effect on the existing operation, business and financial position of the group,” it added in the filing.

Genting Hong Kong – part of Malaysian conglomerate Genting Bhd – owns and runs several cruise line brands.

The Hong Kong unit had said in a December filing that the deal to acquire the aircraft was in relation to its luxury cruise and travel business “primarily in the name of Crystal Cruises”. The group in March 2015 agreed to acquire U.S.-based Crystal Cruises Inc and its subsidiaries for a total consideration of US$550 million.

The aircraft was to have been purchased for a consideration of US$23 million from Genting Singapore Aviation III Ltd, a wholly owned subsidiary of Singapore casino operator Genting Singapore Plc, also controlled by Genting Bhd.