The Genting Hong Kong Limited cruise ship subsidiary of Asian casino giant Genting Malaysia Berhad has reportedly announced that it will likely look to sell off the remaining interest it holds in a subordinate currently developing a new waterfront hotel in Macau.
According to a report from Inside Asian Gaming, the Hong Kong-listed firm last year disposed of a 50% stake in its Genting Macau enterprise, which is in the process of building a 21-story hotel on a two-acre parcel of reclaimed land in the Nam Van district of Macau. The source detailed that this venue is set to open in 2022 and earlier disclosed that it may take part in the former Portuguese enclave’s upcoming casino licensing process so as to be able to feature a gambling component.
However, Genting Hong Kong Limited is reportedly struggling to keep its troubled cruise ship business afloat due to the ongoing impact of the coronavirus pandemic and was forced to suspend all credit payments in September even after netting some $96.1 million via the partial Genting Macau sale to local real estate investor Ao Mio Leong.
The Genting Malaysia Berhad subsidiary reportedly used an official Thursday filing to explain that Ao now has until December 2 to buy the outstanding stake in Genting Macau. The firm purportedly moreover pronounced that her inaction could well force it into triggering a subsequent year-long ‘put option’ on the remaining 50% interest so as to be able to escape future development costs that could well top $350 million.
Genting Hong Kong Limited reportedly declared that such an eventuality would allow it to ‘increase the liquidity of the group’ and continue dry-docking the non-operational vessels in its fleet. The enterprise purportedly stated that completely offloading its interests in Genting Macau would furthermore permit it to continue running some boats and free up cash for ‘cruise-related and other operations.’
Reportedly read the filing from Genting Hog Kong Limited…
“In November of 2020 at the time when the sale and purchase agreement was signed, the group was recommencing the flagship deployment of World Dream in Singapore. The funds derived from the transaction provided additional working capital to enhance onboard facilities for infection prevention, CruiseSafe certification and re-activation of the vessel while also catering to the burn rate of other ships under layup.”