SINGAPORE - Mainboard-listed Genting Hong Kong announced on Thursday that it will dispose of some 20 million shares of Norwegian Cruise Line Holdings (NCLH) and gain proceeds of about US$389.3 million from the sale.
The proceeds will be used for general working capital for the group and to fund new investments of the group should suitable opportunities arise, Genting said in a filing with the Singapore Exchange.
The shares will be sold for an aggregate consideration of US$546.1 million.
Upon completion of the offering, the percentage of the NCLH shares held by Genting's wholly owned subsidiary Star NCLC will decrease from about 22 per cent to about 17.7 per cent. As a result, the group will cease to account for its share of results and net assets of NCLH as an "associate" with effect from May 26, 2015, the date of completion of the offering.
Ceasing to account for NCLH as an associate will give rise to an one-off accounting gain of about US$1.69 billion. This is based on the difference between the market value of the NCLH shares owned by Star NCLC on the date of the underwriting agreement - of about US$573 million on May 19, 2015 - and the carrying value of such NCLH shares in the group's consolidated financial statements.
Dividends from NCLH, if any, will be accounted for in the group's consolidated income statement.
The group's share of profits from NCLH amounted to US$95.0 million for the last financial year ended December 31, 2014, representing approximately 24.7 per cent of its net profit, Genting said.
Trading in Genting shares, which was halted on Wednesday, will resume on Thursday.