Cruiseship owner Genting Hong Kong (GHK) is selling a $489m slice of its Dream Cruises brand as it announced a fall in its loss for the first half.
The company said the move will strengthen it as it works on completing two new 205,000-gt Global Class ships for Dream Cruises due from Verften Wismar in 2020 and 2021.
The buyers are TPG Capital Asia, TPG Growth and Ontario Teachers ’ Pension Plan, who will own a 35% stake.
The deal values Dream Cruises' equity at $1.39bn. With assumption of net debt of $1.87bn, the enterprise value of the transaction is $3.26bn.
The deal will result in a gain of $470m for GHK.
Dream Cruises has three vessels in operation.
GHK announced a net loss of $56.5m in the first half, down from a loss of $141.27m in 2018, as costs fell.
Revenue dipped to $729m from $777m.
Incentives attached
Additional cash will change hands for the Dream Cruises stake on achievement of certain profitability levels.
"Dream Cruises is the premium brand for the fast growing Asian-sourced cruise passenger, with the vision that they will be able to cruise globally in all regions of the world with Dream Cruises,” said Tan Sri KT Lim, chairman and CEO of GHK.
“The investment by TPG and Ontario Teachers will help Dream Cruises to have the youngest and technologically most advanced fleet of quality German-built cruiseships with legendary Asian service.
"And we are delighted to partner again with TPG as we did on Norwegian Cruise Line Holdings in 2008.”
