Genting chairman buys over Genting Hong Kong’s stake in Grand Banks Yachts for HK$62.58m

KUALA LUMPUR (March 25): Genting Hong Kong Ltd is selling its entire stake in Grand Banks Yachts to Genting Bhd chairman Tan Sri Lim Kok Thay (pictured) for HK$62.58 million cash (approximately RM33.3 million).

In a filing posted with the Stock Exchange of Hong Kong, Genting Hong Kong said the disposal will enable it to offload non-core assets and investments and provide required liquidity to the group.

“At the onset of the coronavirus pandemic, the group has taken swift countermeasures to aggressively minimise expenses and conserve cash to lower our cash burn rate. We continue our efforts to conserve cash and seek additional sources of finance, including disposal of non-core assets and investments, to sustain our business working on partial resumption of cruise operations,” it said.

The group’s subsidiary Exa Ltd and Lim entered into an agreement yesterday relating to the sale and purchase of the shares.

“The buyer is Tan Sri Lim, who is the chairman and chief executive officer (CEO), an executive director and a substantial shareholder of the company, and hence is considered to be a connected person of the company under Chapter 14A of the Listing Rules.

"Therefore, the disposal constitutes a connected transaction of the company under Rule 14A.25 of the Listing Rules,” it said.

It said the shares — being all of the equity interests held by the seller in Singapore-listed Grand Banks Yachts — to be acquired by the buyer shall be free from encumbrances and with all dividends, benefits and other rights becoming attached or accruing thereto from the date of completion.

Completion of the disposal is expected to take place within three days from the date of the agreement, or such a later date as mutually agreed by the buyer and the seller.

As at 10.48am today, Genting’s share price had shed four sen or 0.77% to RM5.15, giving it a market capitalisation of RM19.98 billion.

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