Genting Hong Kong has reached an agreement to sell up to a 35 per cent equity interest in Dream Cruises to TPG Capital Asia, TPG Growth and Ontario Teachers’ Pension Plan.
The deal will strengthen Genting Hong Kong as it embarks on completing two Global Class ships for Dream Cruises, the first of which will be delivered in early 2021 and the second in early 2022.
Dream Cruises currently operates a trio of ships, namely World Dream, Genting Dream and Explorer Dream.
Tan Sri Lim, chairman and CEO of GHK, said: “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.”
According to a Genting statement, the transaction is valued at US$489 million, which will result in a gain of about US$470 million.
The purchase will be made in two tranches, with the first guaranteed tranche of at least 24.5 per cent for US$342 million expected in September, and a second tranche of up to 35 per cent in total expected by December 2019.
The investment is expected to close later in 2019, subject to customary closing conditions and regulatory approvals.