Genting Hong Kong has announced the selling down of its stake in cruise company Norwegian Cruise Line Holdings Ltd in a move that will net the embattled firm around US$90 million.
In a filing to the Hong Kong Stock Exchange on Monday, Genting Hong Kong said that its subsidiary Star NCLC Holdings alongside fellow shareholders Apollo Global Management LLC and TPG Viking Funds will offload 15 million ordinary shares, equivalent to 6.58% of the global cruise company. Genting Hong Kong’s sale stake amounts to around 3.29%, reducing its share from 11.13% to 7.84%.
The sale proceeds are due to be paid to Star NCLC Holdings on 16 August 2017.
“It is intended that the sale proceeds for the disposal will be used as general working capital and capital expenditure for the group and/or to fund new investments of the group should suitable opportunities arise,” the company said in its filing.
Genting Hong Kong has endured a tough time of late, with increased competition in the global cruise line industry and the suspension of Resorts World Manila’s gaming license following the deadly attack that saw 38 people lose their lives on 2 June severely impacting its bottom line.
On 31 July, Genting Hong Kong issued a profit warning in which it predicted a consolidated net loss of US$200 million for the six months to 30 June minus its share of RWM’s 2017 profits.
The company attributed the loss to a range of factors, including a more competitive environment resulting from a 13.7% increase in new luxury cruise ship capacity in the industry, full half-year startup losses in 2017 at its new German building shipyards as they prepare to cut steel for new ships, additional depreciation and amortization of the new Genting Dream and shipyards as well as additional interest relating to Genting Dream.
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