Singapore-listed Star Cruises and Apollo will each hold a 50 per cent stake in NCL, parent company of Norwegian Cruise Line, NCL America and Orient Line. It has a fleet of 14 ships in service and under construction.

The investment will be used to pay down debt and allow the cruise line to build more ships as it competes with rivals such as Carnival and Royal Caribbean International.

'To have an investment on this scale by one of the very top names in the private equity world is a huge vote of confidence in the new NCL we have created since Star Cruises became the owner in 2000,' said Mr Colin Veitch, NCL president and chief executive.

New York-based Apollo, which manages US$33 billion globally, will pay cash for the stake. The agreement will give Apollo control of NCL's board, but Star Cruises will retain certain rights.

Star Cruises, which reversed consecutive losses to post a second-quarter profit of US$23.4 million last week, said that with the investment, it will now focus its resources on its Asian operations, particularly on expanding the Greater China market.

Pending approval by shareholders and regulators, and the consent of creditors, the transaction is expected to be completed in early October.

Star Cruises has applied for its shares, halted since last Monday, to resume trading today.