Genting Hong Kong has completed the sale of an initial tranche of shares in global cruise ship company Dream Cruises as it looks to raise funds to expand its cruise ship fleet.
The company revealed in early August that it had reached an agreement to sell a 35% stake in Dream Cruises to an investment holding company owned by Canada’s TPG Darting Ltd, which is in turn owned by TPG Capital Asia and Growth Funds, for around US$490 million, reducing its ownership from 100% to 65%.
In a Friday filing, Genting Hong Kong said it had now completed the initial tranche, representing 32.2% of the issued share capital of Dream Cruises, for US$454 million.
Dream Cruises currently operates three ships – Genting Dream, World Dream and Explorer Dream.
Genting Hong Kong previously said the disposal would “strengthen the Group’s balance sheet and its ability to continue to expand its fleet in the cruise industry. The disposal [will] also reduce the Group’s financial burden in meeting future funding requirements in relation to Dream Cruises’ business.”
The company is in the process of building two “Global Class” ships at its shipyard in Germany, the first of which will be delivered in early 2021 and the second in early 2022.
“As the largest cruise operator in the Asia Pacific region with a leading market share, the company is well positioned to further capitalize on its industry leader position,” it said. “The Board considers that the fastest growing Asian middle-class market provides attractive and compelling business opportunities on which the company will focus its attention and resources.”
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