Genting HK to sell 50% stake in hotel subsidiary

The company has signed an agreement to sell a stake in its Macau hotel to increase liquidity.

Macau.- Genting Hong Kong has announced it will sell a 50 per cent stake in Genting Macau Holdings Ltd, a subsidiary involved in the development of a hotel in Macau.

According to a filing, the agreement is worth HKD750m (US$96.7m).

The subsidiary, via a unit called Treasure Island Entertainment Complex Ltd, controls a 75-per cent stake in Treasure Island.

The buyer is Star Cruises Asia Holding Ltd, a direct wholly-owned subsidiary of Genting Hong Kong and the purchaser, White Supreme Corp.

The agreement includes call and put options for the remaining 50 per cent stake in Genting Macau.

The company said the operation was “aligned with the group’s objective to sell non-core assets” and that it would “reduce the group’s financial burden in meeting future funding requirements in relation to Genting Macau’s business.”

It said: “The transaction will increase the liquidity of the group, with the proceeds being used for general working capital for the group, thereby enabling layup of the cruise ships in its fleet which are not in operation as well as the ongoing operation of those cruise ships that continue to sail, in addition to funding the group’s cruise-related and other operations.”