Genting Hong Kong to delist from SGX

Cruise operator Genting Hong Kong, which operates the Genting Dream (pictured), announced it will delist from the SGX mainboard after markets closed on Oct 3, 2017.
Cruise operator Genting Hong Kong, which operates the Genting Dream (pictured), announced it will delist from the SGX mainboard after markets closed on Oct 3, 2017.PHOTO: GENTING HONG KONG

SINGAPORE - Cruise operator Genting Hong Kong is delisting from the mainboard of the Singapore Exchange (SGX) - home to its secondary listing for the last three years.

The company will return to its primary listing in Hong Kong, it said in a filing after markets closed on Tuesday (Oct 3).

Genting HK said it has received confirmation from the SGX that it has no objections to the proposed voluntary delisting, subject to certain conditions.

The firm did not state when exactly it will delist, but a condition for obtaining SGX approval is that it must give shareholders at least three months' notice.

Shareholders here who wish to continue trading the shares will have to make arrangements to transfer their stock from the Central Depository to the Hong Kong clearing system and a broker in the Chinese territory. Genting HK will bear the transfer fees.

Genting HK said the delisting is in line with its strategic focus on its cruise ship business in Asia - in particular, North-Asia - as the company continues to undertake initiatives to tap the burgeoning growth potential in the Chinese market.

Genting HK chairman and chief executive Lim Kok Thay added the decision to delist from the SGX "comes after careful consideration and is in line with our growth strategy and plans to enhance value for all our shareholders in the long term".

"Maintaining a single primary listing on the main board of the The Stock Exchange of Hong Kong (HKSE) will potentially increase the trading of the company's shares on the HKSE, which will enhance the company's profile amongst North-Asian investors," said Mr Lim.

"The consolidated trading of the company's shares on the HKSE arising from the proposed delisting is also expected to increase the liquidity of such shares on the HKSE, thereby improving the effectiveness of any future capital raising activities to be undertaken by the company."

Mr Lim also noted that as Genting HK continues to expand its product offering and services to meet the growing demands of the Chinese market, it aims to focus resources on business operations and streamline compliance obligations.

"We appreciate the support of our shareholders based in Singapore and Malaysia over the years and invite all our shareholders to stay on board with us and participate in our next phase of growth," he said.

Genting HK, which has a market cap of about US$2.12 billion (S$2.88 billion), noted that it has not carried out any fund-raising activities in Singapore in the past six years.

A notice to shareholders outlining the actions required by shareholders, including any costs to be incurred by them for the share transfer process, will be sent to shareholders at least three months before the delisting date.

The voting rights and entitlement to dividends of shareholders will not be affected by the delisting.