Genting HK's unit to sell 10m shares in Norwegian Cruise Line for US$590m

GENTING Hong Kong said on Wednesday that its subsidiary, Star NCLC, has agreed to sell 10 million shares, representing a 4.36 per cent stake, in Norwegian Cruise Line, for US$590 million.

The sale is expected to reap US$44.6 million for the company, which plans to use the money as general working capital for the group and/or to fund new investments should suitable opportunities arise.

Based on the closing price of the Norwegian Cruise Line shares on the Nasdaq Global Select Market on Aug 10, the date of the underwriting agreement, the shares are worth about US$614.2 million.

However, the company's board considers the offer as a good opportunity to realise profits with cash inflow from partial realisation of its investment in Norwegian Cruise Line, a Florida-based cruise ships operator.

After the sale, Star NCLC's stake in Norwegian Cruise Line will fall to about 13.3 per cent, from 17.7 per cent.

Trading in Genting HK shares, which was halted on Tuesday, will resume on Wednesday.