Genting Hong Kong Agrees to Sell 35% of Dream Cruises

Cruise ship World DreamIllustration; Source: Pixabay under CC0 Creative Commons license

Cruise operator Genting Hong Kong (GHK) has reached an agreement to dispose of up to a 35 percent equity interest in its cruise brand, Dream Cruises.

The deal was reached with TPG Capital Asia, TPG Growth and Ontario Teachers’ Pension Plan (Ontario Teachers’) that would acquire the interest at a consideration of USD 489 million, valuing Dream Cruises total equity at USD 1,397 million.

Genting Hong Kong said that the transaction would result in a gain of around USD 470 million, which would increase the net asset value of GHK shares by USD 5.5 cents. The deal would strengthen the company as it embarks on completing two Global Class ships for Dream Cruises, the first of which will be delivered in early 2021 and the second in early 2022.

The transaction would be undertaken in two tranches, with the first guaranteed tranche of at least 24.5% for USD 342 million expected in September, and a second tranche of up to 35% in total expected by December of 2019.

Additional incentive payments will be paid on achievement of certain profitability level of Dream Cruises and delivery of each of the Global Class ships.

“The investment by TPG and Ontario Teachers’ will help Dream Cruises to have the youngest and technologically most advanced fleet of quality German-built cruise ships with legendary Asian service,” Tan Sri KT Lim, Chairman and CEO of GHK, said.

The investment is expected to close later in 2019, subject to customary closing conditions
and regulatory approvals.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Aug 2019 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >