TPG Darting Ltd. is wholly owned by TPG Capital Asia and Growth Funds.
The sale will occur in two tranches, the first of at least 24.5%.
Dream Cruises currently operates sisters World Dream and Genting Dream, along with Explorer Dream (ex SuperStar Virgo), and is building two next-generation 204,000gt Global-class ships for delivery in 2020 and 2021.
Strengthened balance sheet
The deal will strengthen the group’s balance sheet and its ability to continue expanding its fleet, Genting Hong Kong said in a filing.
The disposal will also reduce the group’s financial burden in meeting future funding requirements related to Dream Cruises’ business. Further, the proceeds will increase liquidity and strongly position the company to fund its continued expansion and shipbuilding program on completing the two Global-class ships at MV Werften.
Two Global-class options
In connection with the sale, MV Werften granted Dream Cruises options for a third and fourth Global-class newbuilds, at essentially the same terms as the first two ships. These options can be exercised between October 2021 to the end of September 2023, and October 2022 to the end of September 2024.
Genting HK considers itself well positioned to further capitalise on its leading market share in the Asia Pacific region. The board believes the fast growing Asian middle-class market provides attractive and compelling business opportunities on which the company will focus its attention and resources.
Upon the deal's closing, Genting HK's percentage shareholding in Dream Cruises will decrease to 65%, and the brand will become an indirect non-wholly owned subsidiary.