Emperor Entertainment Hotel, a gaming and property investment firm controlled by Albert Yeung Sau-shing, plans to dispose of its Golden Princess gaming cruise ship to focus on its casino hotel in Macau, a source said.
The buyer is Hong Kong-listed Fortuna International Holdings. Fortuna, which operates a Japanese restaurant and an eel-trading business, will pay between HK$120 million and HK$130 million based on the net asset value of the ship.
The 220-cabin Golden Princess, bought by Emperor Entertainment from Mr Yeung in 2004 for US$17 million, is one of several ships that anchor in Victoria Harbour and operate overnight gambling cruises into international waters.
Shares in Emperor Entertainment were suspended from trading on Monday, pending the announcement of a 'major transaction'. Fortuna was also suspended pending a 'very substantial acquisition'.
Hong Kong's casino cruise ships are able to offer more competitive commissions and rebates to high rollers than land-based rivals in Macau, which are subject to a 39 per cent tax on gaming revenue. However, a crowded sector has diminished the appeal for some operators, especially those with access to larger volumes and growth prospects in Macau.
Emperor Entertainment's revenue from the Golden Princess fell 9.5 per cent in the six months to September last year, while cruise-segment profit dropped 29 per cent to HK$15.2 million.