Genting Hong Kong Sells NCLH Shares
PHOTO: Genting Hong Kong sold some shares in Norwegian Cruise Line Holdings Ltd. Pictured is the Norwegian Getaway. (Courtesy of Norwegian Cruise Line)
Genting Hong Kong, the Asian company that is buying Crystal Cruises, sold shares in another cruise company, Norwegian Cruise Line Holdings Ltd. (NCLH) but still owns about 22.1 percent, down from about 24.9 percent.
According to financial filings, Genting entered into an agreement to sell 6.25 million shares for $317 million. The company said it expects a gain of approximately $218.2 million.
The proceeds “will be used as general working capital and/or to fund new investments of the group should suitable opportunities arise,” the Hong Kong-listed company said. “The board considers the offering as a good opportunity for the group to realize profits with cash inflow from partial realization of its investment in NCLH.”
In related news, two Genting executives last week resigned from the NCLH board of directors. Genting Chairman and CEO Tan Sri Lim Kok Thay and David Chua Ming Huat, resigned from the NCLH board on March 3 with immediate effect.
“The resignations did not involve a disagreement with the company on any matter relating to the company’s operations, policies or practices,” NCLH said in an SEC filing. Two replacement directors will be nominated by the company.
The resignations came the same day Genting Hong Kong announced it was buying Crystal Cruises for $550 million in cash from NYK, Crystal’s Japanese parent company since its inception in 1988. The sale is expected to close in the second quarter.
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