Genting HK applied to the Hong Kong Stock Exchange to resume trading at 9 a.m. Monday following its announcement of the NCLH share sale. The 6.25m shares represent about 2.7% of the total and outstanding NCLH shares.
Based on the March 5 closing price on the NASDAQ Global Select Market, the date of the underwriting agreement, the value of the share disposal is approximately $320.8m, before expenses.
The proceeds will be payable by underwriter UBS Securities LLC in cash on March 11. Genting HK said it plans to use the proceeds as general working capital and/or to fund new investments should opportunities arise.
On April 25 last year, Genting HK shareholders granted a disposal mandate to sell, from time to time, up to 56.82m NCLH shares. The disposal mandate has a one-year term and during Norwegian Cruise Line Holdings' recent investor conference, management indicated they would expect Genting HK to renew the mandate.
A gain of approximately $218.2m is expected to accrue to Genting HK as a result of the disposal based on the excess of expected sale proceeds over the carrying value of the Genting disposal shares of approximately US$98.6m as of Dec. 31, 2014.
TPG Viking Funds, NCLH's third largest holder, also sold 6.25m shares in the secondary offering, and its stake goes to 4.3% from 7%.
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