Genting HK to sell 2.3% stake in Norwegian Cruise Lines for S$20.4 million net gain

Norwegian Getaway (pictured) began sailing Eastern Caribbean voyages in February 2014.
Norwegian Getaway (pictured) began sailing Eastern Caribbean voyages in February 2014.PHOTO: NORWEGIAN CRUISE LINE

SINGAPORE - Genting Hong Kong said on Wednesday (Dec 16) that it plans to sell a 2.3 per cent stake in Norwegian Cruise Lines Holdings (NCLH) for about US$148.25 million (S$208.5 million).

The sale will result in a gain of US$14.5 million (S$20.4 million) for the leisure and gaming company, with proceeds to be used for working capital and to fund new investments should opportunities arise, it said.

Post-sale, Genting Hong Kong's stake in NCLH will fall to 11.1 per cent from 13.4 per cent.

Genting Hong Kong and fund manager Apollo entered into an underwritten disposal deal with Goldman Sachs on Dec 14 to sell 10.3 million shares of NCLH for US$296.5 million in net proceeds. Half of the shares for sale, or about 5.2 million shares, will come from Genting Hong Kong's wholly owned subsidiary Star NCLC.

In August, Star NCLC sold 10 million shares of NCLH for about US$590 million, booking a gain of US$44.6 million.

Genting Hong Kong shareholders had, at a special general meeting in June, granted a disposal mandate authorising the board to dispose up to 40.57 million NCLH shares over a year, or the amount of remaining NCLH shares held by the group at the time.

Trading of Genting Hong Kong shares will resume on Wednesday after it was halted on Tuesday for the announcement.