Genting Hong Kong said it has agreed to sell as much as 35 percent of its Dream Cruises unit, making a gain of about $470 million to reduce debt and strengthen its balance sheet.
The buyer is a unit of TPG Capital Asia and Growth Funds, Genting said in a statement to the Hong Kong Stock Exchange.
The acquisition will be carried out in two tranches. The first tranche of shares will be not less than 24.5 percent of the cruise company, while the second tranche will be up to a maximum of 35 percent, it said.
“As the largest cruise operator in the Asia Pacific region with a leading market share, the company is well positioned to further capitalise on its industry leader position,” Genting said. “The board considers that the fastest growing Asian middle-class market provides attractive and compelling business opportunities on which the company will focus its attention and resources.”
Genting said the proceeds will help its continued expansion and will help to fund a new ship building program, including two global class ships currently under construction. Global 1 is scheduled for delivery in early 2021 and Global II in early 2022.