Genting HK to sell 50% stake in Macau hotel project for HKD750 million

The cruise and resort operator Genting Hong Kong Ltd has agreed to offload a 50% stake in a hotel project in Macau under its subsidiary Genting Macau Holdings Ltd for a total of HKD750 million (USD96.7 million).
According to the group’s filing yesterday, the vendor is Star Cruises Asia Holding Ltd, a direct subsidiary of Genting Hong Kong, and the buyer is White Supreme Corp., an entity incorporated in the Republic of the Marshall Islands.
The principal shareholder of White Supreme is Ao Mio Leong, a known investor in Macau. The company will offer HKD50 million for the 50% cut of Genting Macau, and HKD700 million to cover a shareholder’s loan and interest owing by Genting Macau to the vendor, Star Cruises Asia.
The sales agreement also covers call and put options, which allow White Supreme to purchase the remaining 50% stake in Genting Macau in the future if desired.
The relevant hotel project, operated by Genting Macau through a unit called Treasure Island Entertainment Complex Ltd, is located on reclaimed land in the Nam Van area of the Macau peninsula.
In August, Genting Hong Kong posted a net loss of almost $742.6 million for the first half of 2020, a stark contrast compared to a net loss of $56.5 million in the same reported period last year.
Genting Hong Kong is one of the cruise operators who have been reeling from Covid-19.
The sale was intended to take the edge off the group’s financial burden in meeting future funding requirements concerning Genting Macau’s business.