Genting to sell Norwegian Cruise Line stake for $546.1m

Genting Hong Kong said it’s selling down its stake in Norwegian Cruise Line Holdings for net proceeds of about $546.1 million to raise funds for working capital and fund new investment opportunities.

The company’s Star NCLC unit will cut its stake from about 22 percent to about 17 percent as a result of the secondary offering, Genting said in a Hong Kong Stock Exchange filing.

A gain of approximately $389.3 million is expected to accrue to the company as a result of the disposal based on the excess of expected sale proceeds over the carrying value of the shares of about $156.8 million as of 31 March 2015.

As a result of the reduction in the stake, the group will cease to account for its share of results and net assets of NCLH as an “associate” with effect from 26 May 2015. This will give rise to an one-off accounting gain of about $1.7 billion based on the difference between the market value of the NCLH shares on the date of the agreement and the carrying value of the stock in the group’s accounts.

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