Genting Hong Kong recently sold 3.29 percent of its stake in Norwegian Cruise Line Holdings Ltd for million. According to a filing with the Hong Kong Stock Exchange, Genting Hong Kong said its subsidiary Star NCLC Holdings along with shareholders Apollo Global Management LLC and TPG Viking Funds sold 15 million ordinary shares, about 6.58 percent of the global cruise company, for about 9.1 million. The sale reduces Genting Hong Kong’s stake in Norwegian Cruise Line Holdings to 8.94 percent from 11.13 percent.
“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 the filing.
Genting Hong Kong, a subsidiary of Malaysian conglomerate Genting Bhd, has faced increased competition in the global cruise line industry. Additionally, its bottom line was significantly affected by the suspension of Resorts World Manila’s gaming license after the June 2 attack in which 38 people were killed.
On 31 July, Genting Hong Kong said it expected a consolidated net loss of $200-$220 million for the six months to June 30, compared to $73.73 million in the same period in 2016. The forecast did not include revenue from Travellers International Hotel Group Inc., the joint venture that operates the Resorts World Manila casino resort in the Philippines.
The company attributed the loss to several factors, including a 13.7 percent increase in new luxury cruise ship capacity; full half-year startup losses in 2017 at its new German shipyards; and additional depreciation, amortization and interest on its new Genting Dream ship.
With expansion plans for its cruise business, Genting Hong Kong has developed a three-brand portfolio of cruise lines, including Crystal Cruises for the ultra-luxury segment, Dream Cruises for the premium segment and Star Cruises the “contemporary” segment.
