Genting Hong Kong Limited sells significant shares in its Dream Cruises brand
Asian cruise operator Genting Hong Kong Limited has reportedly announced the signing of a contract to sell up to 35% of its Dream Cruises brand to a company controlled by private equity firm TPG Growth in partnership with Ontario.
According to a report, the Hong Kong-listed company announced on Tuesday, by means of an official filing (pdf), that the company will divest at least 24.5% of its Dream Crises brand next month to a company called TPG Darting It is planned to divest it of another 10.5% of the same venture before year-end.
Genting Hong Kong, a subsidiary of Asian casino operator Genting Malaysia Berhad, announced that the first tranche of shares is to receive approximately $ 342 million in cash before an additional $ 147 million is recognized on the resulting allotment. The operator, also responsible for the Crystal Cruises and Star Cruises brands, has allegedly stated that his new partner has also agreed to grant him “additional incentive payments” based on “achieving a certain level of profitability from Dream Cruises and the respective delivery are based on the ships of the global class. ‘
Genting Hong Kong Limited currently operates three cruise ships under the Dream Cruises brand, which includes the ships Genting Dream, World Dream and Explorer Dream. GGRAsia reported that these ships have casinos offering a variety of gaming machines and gaming tables, and welcome passengers mainly from ports in southern China and Singapore.
Genting has reportedly used its records to identify TPG Darting and its parents as “highly respected” private equity institutions, and the new alliance “represents a significant vote of confidence in Dream Cruises.” The operator also said that the Proceeds from the transactions due to be used to increase the liquidity of the company and to help finance its further expansion and new shipbuilding program, which includes the premiere of a pair of innovative ships of the Global Class by mid-2022.
Allegedly read the submission of Genting …
“The divestiture will strengthen the Group’s balance sheet and further expand its fleet in the cruise industry. The divestiture will also reduce the Group’s financial burden if future financing requirements for the Dream Cruises business are met. “