Genting to Buy 3 German Shipyards for EUR230.6 Million

   By Jeffrey Ng

HONG KONG--The cruise business arm of Malaysia's Genting Bhd (3182.KU) has agreed to buy three German shipyards for EUR230.6 million ($251 million), a deal that will help guarantee ship deliveries to the company at a time of robust demand for cruise vessels globally.

Hong Kong-listed Genting Hong Kong Ltd. (0678.HK) said Tuesday it is buying three shipyards located in the German cities of Wismar, Warnemunde and Stalsund.

The company, which operates cruises under the Crystal Cruises, Dream Cruises and Star Cruises brands, said it faces the risk of being unable to obtain sufficient cruise ship building slots at acceptable prices as orders for cruise ships reach an all-time high.

"In order to address this risk, it is strategic that the group acquire its own cruise shipbuilding yards to build its cruise fleet, freeing management to focus on design, planning and deployment of its planned cruise ship fleet," the company said.

Write to Jeffrey Ng at jeffrey.ng@wsj.com

(END) Dow Jones Newswires

March 01, 2016 20:25 ET (01:25 GMT)

Genting Hong Kong (CE) (USOTC:GTHKF)
Historical Stock Chart
From Nov 2024 to Dec 2024