Ailing cruise operator Genting Hong Kong on Tuesday (1 Sept) has agreed to sell the nightclub operator Zouk Group for S$14 million, noting that it will help to “offload non-core assets” and generate liquidity to the group.
The Singapore-based Zouk Group will be sold to Malaysian firm Tulipa, which is owned by Lim Keong Hui, the son of Genting Group chairman Lim Kok Thay.
The sale shares are valued at S$14 million – which is subject to adjustment based on the cash level of Zouk Group – and the deal is expected to be completed by 4 September or a later date.
Zouk Group will cease to be an indirect wholly-owned subsidiary of Genting Hong Kong once the deal is completed.
“The catastrophic COVID-19 pandemic has caused an acute disruption to businesses worldwide and led the cruise and tourism industry to a sudden halt since February 2020.
“The disposal will enable the group to offload non-core assets and investment and provide liquidity to the group,” Genting Hong Kong said in a stock exchange filing.
Earlier on 28 August, Mr Lim Keong Hui resigned from the Genting Hong Kong board. The company recorded a net loss of US$742.6 million (S$1.01 billion) in the first half of the year due to the impact from the COVID-19 pandemic.
Genting Hong Kong owns Star Cruises, Dream Cruises, Crystal Cruises and a stake in Resorts World Manila. It recorded a US$226.2 million of revenue within the six months, down from US$729.2 million in the same period last year, as reported by The Straits Times.
Zouk Group, on the other hand, made a pre-tax loss of HK$79.6 million in the first seven months of the year and had an unaudited consolidated net asset value of about HK$72.6 million as of 31 July.