Meyer Werft Enters $960m Cruise Ship Deal

Genting Hong Kong Limited has entered into a EUR 707.2 million (approx $960 million) worth shipbuilding contract with German-based Meyer Werft for the construction and delivery of a cruise ship.

The 1,682 cabin cruise ship, ordered by Chinese Dream Ltd. a wholly-owned subsidiary of Genting HK, will enable the company to take advantage of growing demand for cruise business in the Asia Pacific market and the port infrastructure developments in Hong Kong and Asia.

In its filing, Genting reported that the ship is due for delivery in October 2016 and will initially operate in North Asia, targeting primarily at China, Taiwan and Hong Kong.

The contract price is expected to be funded by a combination of internal resources of the company and external financing to the extent available.

The terms of the contract will become effective no later than midnight (Papenburg, Germany time) January 14th 2014, upon meeting of certain conditions, including:

• approval of the final version of the specification and plans for the vessel;
• confirmation that the financing (Ship Financing) has been arranged;
• shareholders’ approval for the Contract and the Ship Financing.

[mappress]
Source: gentinghk, October 8, 2013