Genting Hong Kong sold Star Cruises to Resorts World for a total consideration of $3.5 million, with an intent of consolidation to benefit the creditors, a regulatory filing submitted to the Hong Kong Stock Exchange noted.
The filing further read that, on 31 August 2022, Star Cruises Asia, a wholly-owned subsidiary of Genting Hong Kong Ltd and Resorts World entered into the Share Purchase Agreement.
Pursuant to the inking of papers, Star Cruises Asia agreed to sell its shares to Resorts World, representing the entire issued capital of Star Market for a total consideration of US$3,500,000.
After completion of the deal, Star Market will cease to be an indirect wholly-owned subsidiary of Genting Hong Kong Ltd.
As an outcome of the deal, the financial results, assets, and liabilities of Star Market will no longer be included in the consolidated financial statements of the Group after the completion of the transaction.
Resorts World is held 50 percent indirectly by Tan Sri Lim Kok Thay, also a former Executive Director of Genting Hong Kong Ltd.
Balance 50 percent stake is indirectly held by Genting Berhad in which Tan Sri Lim Kok Thay has more than 30 percent direct or indirect interest.
Resorts World is considered to be an associate of Tan Sri Lim Kok Thay and a connected person of the Company, as a result, the dealing constitutes a connected transaction of the Company where the exchange of ownership vide listing rules are exempted from independent shareholders’ approval and is only subject to the reporting and announcement, the filing read.
Star Market jointly owns, with an affiliate of Resorts World, trademarks and intellectual property rights.
The transaction is driven by a commercial objective to consolidate the ownership of such trademarks and intellectual property rights and to realise an asset of the Group for the benefit of its creditors, the filing report read.
The entity also generates a considerable recovery to the Group without compromising the Group’s right to use such trademark and intellectual property rights in accordance with the terms of the License Agreement.
The principal business of Star Market is to hold trademarks and intellectual property rights for Genting Hong Kong Ltd.
Upon Closing, Star Market will be a wholly-owned subsidiary of Resorts World.
Based on the unaudited financial statements of Star Market as of 31 December 2021, the total assets and net liabilities of Star Market amounted to approximately US$290.31 and US$1,251,992.90, respectively.
The net loss reported by the Star Market for FY20 stood at $14,444.99, and for FY21, it stood at $1,710.98.