Genting Hong Kong, a member of the Malaysian Genting Group, has reached an agreement to sell a 35% stake in global cruise ship company Dream Cruises to Canada’s TPG Darting, which is owned by TPG Capital Asia and Growth Funds.
The company said the deal would strengthen its balance sheet as well as its ability to continue to expand its fleet in the cruise industry.
The consideration for the 35% equity interest is US$489 million, valuing Dream Cruises total equity at US$1,397 million. With assumption of net debt of US$1,871 million, the enterprise value of the transaction is US$3,268 million. The transaction will result in a gain of approximately US$470 million, which will increase the net asset value of each GHK shares by US 5.5 cents or HK 43 cents.
"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 cruise ships with legendary Asian service. And we are delighted to partner again with TPG as we did on Norwegian Cruise Line Holdings Ltd. in 2008,” he added.
“Dream Cruises is an iconic and innovative brand with a strong product offering that is well positioned in an attractive industry which will benefit directly from rising Asian wealth and outbound tourism.” said Ganen Sarvananthan, Co-Managing Partner of TPG Capital Asia.
“TPG Capital Asia and TPG Growth are delighted to partner again with Genting HK and Ontario Teachers’ in developing an Asian cruise brand, leveraging the years of experience," he added.