Update | Genting HK to acquire German shipyard operator to speed up fleet expansion

Genting Hong Kong has agreed to pay €17.5 million for shipyard operations and related leasing rights in the German port of Bremerhaven to facilitate its fleet expansion and brand development, the cruise operator said yesterday.

It will buy 70 per cent of German shipyard owner Lloyd Werft Bremerhaven (LWB) and 50 per cent of Lloyd Investitions-und Verwaltungs (LIV), another German firm that provides letting and leasing services for real estate and operating facilities. The sellers are German firms Petram Beteiligungs, Ehlerding Beteiligungs and BLG Logistics Group.

Upon completion of the deal, Genting Hong Kong, part of the Malaysian travel and resorts conglomerate Genting Group, will provide €20 million as a shareholders' loan to LWB if it cannot obtain sufficient financing from banks. The Hong Kong firm also has an option to acquire the remaining 30 per cent of LWB shares and 50 per cent of LIV shares from Petram for €16.5 million before the end of 2017.

"The transaction will enable the company to leverage technical know-how and expertise of a reputable shipyard with a well-established and long track record in the shipbuilding industry, thus allowing the company to expedite its business plans through … priority access to new building slots at competitive pricing," Genting Hong Kong said in filing to the Hong Kong exchange.

The company in March agreed to buy Crystal Cruise for US$550 million from Japan's Nippon Yusen Kabushiki Kaisha in a deal that will help it expand in the high-end cruise market.

It owns and operates Star Cruises and Norwegian Cruise Line and is a substantial shareholder in Filipino casino Resorts World Manila.