The Norwegian Getaway cruise ship arrives in Port of Gdynia, Poland June 23, 2017. REUTERS/Radu Sigheti
KUALA LUMPUR: Genting Hong Kong Ltd and two other shareholders of Norwegian Cruise Line Holdings Ltd (NCLH) are offering for sale a total of 15 million ordinary shares - or about a 6.6% stake - in the global cruise company.
The Miami, Florida-headquartered NCLH, which is listed on the Nasdaq Global Select Market, announced that Genting Hong Kong’s wholly-owned subsidiary Star NCLC Holdings Ltd, Apollo Global Management LLC-affiliated funds and TPG Viking Funds had severally (not jointly) inked an underwriting agreement on the offering.
As underwriters, Citigroup Global Markets Inc, Barclays Capital Inc and Goldman Sachs & Co LLC propose to offer the ordinary shares “from time to time.”
There is no fixed price. It said the shares would be sold in one or more transactions on the Nasdaq Global Select Market, in the over-the-counter market, through negotiated transactions or otherwise at prevailing market prices, at prices related to prevailing market prices or at negotiated prices.
At the close of Nasdaq trading on Thursday, NCLH shares changed hands at US$57.07 (RM245.13).
In a disclosure to the Singapore Exchange, Genting Hong Kong said it proposed to sell 7.5 million shares. Based on Thursday’s closing price, the shares have a market value of about US$428.02mil (RM1.84bil).
The sale, once completed, will lower Genting Hong Kong’s stake from 11.13% to 7.84% (based on the ordinary shares issued and outstanding as of July 31).
“The total consideration for the Genting disposal shares after deduction of the relevant estimated expenses will amount to approximately US$409.1mil (RM1.76bil),” the cruise operator told the exchange.
A gain of about US$90.1mil (RM386.87mil) is expected to accrue to the group as a result of the disposal, it added.
Genting Hong Kong (formerly Star Cruises Ltd), majority owned by Tan Sri Lim Kok Thay, has a primary listing on the Stock Exchange of Hong Kong and a secondary lisrting on the Singapore Exchange.
The cruise and resort operator on July 31 issued a profit warning that the group was expecting a consolidated net loss of US$200mil to US$220mil (RM859.3mil to RM945.2mil) for the first half-year to June 30, 2017, up from a loss of US$73.7mil (RM316.6mil) in the 2016 corresponding period.
However, the comparison did not take into account the group’s share of results of Travellers International Hotel Group Inc, which operates Resorts World Manila, as Travellers is a listed company on an overseas stock exchange (the Philippine Stock Exchange) and its results had not been announced then.
On Friday, Genting Hong Kong - which has an effective interest of 44.9% in Travellers - disclosed that Travellers’ net profit for the half-year declined 79% to 372.98 million pesos (RM31.4mil).
* For our earlier story, click Genting HK selling a stake in Norwegian Cruise Line
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