Tulipa Ltd. acquired the Zouk Group for approximately S$14m (HK$79.3m), subject to adjustment.
In a filing, Genting HK said the sale is part of its efforts to aggressively minimize expenses and conserve cash to lower its cash burn rate during the coronavirus pandemic. 'We continue our efforts to conserve cash and to seek additional sources of finance, including disposal of non-core assets and investments, to sustain our business pending resumption of cruise operations. The disposal [of Zouk] will enable the Group to offload non-core assets and investment and provide liquidity to the Group.'
The filing said the S$14m price was determined after arm’s length negotiations between the buyer and the seller with reference to a recent valuation of Zouk Group conducted by an independent chartered valuer and appraiser.
Approximate HK$6.7m gain
The sale is expected to result in a gain of approximately HK$6.7m for Genting HK, subject to the corresponding upward or downward adjustment post-completion. Proceeds will be used as working capital for Genting HK.
Until recently, Lim Keong Hui served as deputy CEO of Genting HK. He continues as a director.
Gentng HK had acquired Zouk in 2015.