Genting to Sell $1.9 Billion Stake in NCL?

[barnacle_boy]

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=237961:genting-hk-set-to-sell-nclh-stake-for-us$-19-bil&Itemid=3

 

Principal shareholder Genting has been selling huge quantities of their NCL stock for a while, but now it looks like they are getting out completely. For more than a decade, Genting has played an enormous role in the development of NCL. The core "Freestyle Cruising" concept was largely developed on ships operated by Genting's Star Cruises in the Asian market. It'll be interesting to see what, if any, impact this has on NCL going forward.

[sjbdtz]

Depends who is buying....more than who sold.

 

Also interesting is the 'why'. Genting's profit down 81% year over year, want to extract profits from NCL investment.

 

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Edited March 6, 2014 by sjbdtz

[NYcruzzer]

Depends who is buying....more than who sold.

 

Also interesting is the 'why'. Genting's profit down 81% year over year, want to extract profits from NCL investment.

 

.

 

Maybe they are trying to raise capital for their Resorts World project in Las Vegas ? I think they are also planning on bidding for a possible casino in Japan if they become legal there.

Edited March 6, 2014 by NYcruzzer

[newmexicoNita]

interesting to say the least. I am sure it has nothing to do with NCL directly but why they want the money...Like sj said, it is more who is buying, not who is selling. I guess my little 100 shares we bought a month or so ago isn't really much.

[biker@sea]

I would like to buy some NCLH .

 

Should I buy now or wait and see if it drops in price ? :confused:

[newmexicoNita]

I would like to buy some NCLH .

 

Should I buy now or wait and see if it drops in price ? :confused:

 

I actually bought when it was high and have lost a few $$s this month, but how is anyone to know when to buy.

[biker@sea]

I actually bought when it was high and have lost a few $$s this month, but how is anyone to know when to buy.

 

Ya it's not like they give you a cabin upgrade if it cost less to buy in 9 months . ;):D

Edited March 6, 2014 by biker@sea

[NH Cruisers]

I actually bought when it was high and have lost a few $$s this month, but how is anyone to know when to buy.

I guess the only way to know would be inside trading, I think it is illegal though.

[newmexicoNita]

I guess the only way to know would be inside trading, I think it is illegal though.

 

ask Martha Stewart about inside trading. I think I will just continue to take my chances. it isn't like I have a million$$ invested in the market.

[Da-Painter]

Genting issued very little, maybe 5% of the total ownership of NCL, in stock.

They sell this and pocket the cash. They still have 95% ownership of the company, and more cash to do with what they want.

 

Just like Facebook stock, they issue stock, the big shots of the company sell their stock, and take advantage of the high prices they sell their stock for.

 

They want to sell when the prices are high, of course. So you have the brokerage firms 'pump' up the price by issuing 'Buy' recommendations, with glorious forecasts for the future of the company, getting the public to come in and buy the stock, moving the price up higher.

The brokerage firms sell the stocks for their clients, charging commissions, and make their money, the executives sell their stock out at high prices, and everyone is happy.

 

NCL stock has ranged from 24 to 37 in the last 1+ years. So one can not blame Genting for selling off their holdings while the prices are high.

And in the future, Genting may issue new holdings of the stock, and continue this process forever, pocketing the cash.

 

Nothing illegal with this, this has been going on forever.

 

Sometimes its discouraging to the folks that buy the stock, but thats not their worries. :eek:

[njhorseman]

Genting issued very little, maybe 5% of the total ownership of NCL, in stock.

They sell this and pocket the cash. They still have 95% ownership of the company, and more cash to do with what they want.

 

Just like Facebook stock, they issue stock, the big shots of the company sell their stock, and take advantage of the high prices they sell their stock for.

 

They want to sell when the prices are high, of course. So you have the brokerage firms 'pump' up the price by issuing 'Buy' recommendations, with glorious forecasts for the future of the company, getting the public to come in and buy the stock, moving the price up higher.

The brokerage firms sell the stocks for their clients, charging commissions, and make their money, the executives sell their stock out at high prices, and everyone is happy.

 

NCL stock has ranged from 24 to 37 in the last 1+ years. So one can not blame Genting for selling off their holdings while the prices are high.

And in the future, Genting may issue new holdings of the stock, and continue this process forever, pocketing the cash.

 

Nothing illegal with this, this has been going on forever.

 

Sometimes its discouraging to the folks that buy the stock, but thats not their worries. :eek:

 

You're wrong about what percentage of NCL is owned by Genting. In 2007 50% of NCL was acquired by Apollo Management via a $1 billion cash equity investment. At that time, Genting (Star Cruises), although still owning 50% of the company, also ceded control of the board of directors to Apollo Management.

 

Per the article cited by the OP, Genting would retain only a 27.7 percent stake in NCLH after the stock sale is completed, not the 95% you stated.

[newmexicoNita]

Genting issued very little, maybe 5% of the total ownership of NCL, in stock.

They sell this and pocket the cash. They still have 95% ownership of the company, and more cash to do with what they want.

 

Just like Facebook stock, they issue stock, the big shots of the company sell their stock, and take advantage of the high prices they sell their stock for.

 

They want to sell when the prices are high, of course. So you have the brokerage firms 'pump' up the price by issuing 'Buy' recommendations, with glorious forecasts for the future of the company, getting the public to come in and buy the stock, moving the price up higher.

The brokerage firms sell the stocks for their clients, charging commissions, and make their money, the executives sell their stock out at high prices, and everyone is happy.

 

NCL stock has ranged from 24 to 37 in the last 1+ years. So one can not blame Genting for selling off their holdings while the prices are high.

And in the future, Genting may issue new holdings of the stock, and continue this process forever, pocketing the cash.

 

Nothing illegal with this, this has been going on forever.

 

Sometimes its discouraging to the folks that buy the stock, but thats not their worries. :eek:

 

Who is blaming him? I don't think that is the reason for the post. The OP is just mentioning and wondering if there is a reason he is selling. NJhorseman also brings up a good point.

Edited March 7, 2014 by newmexicoNita

[Seanote]

You're wrong about what percentage of NCL is owned by Genting. In 2007 50% of NCL was acquired by Apollo Management via a $1 billion cash equity investment. At that time, Genting (Star Cruises), although still owning 50% of the company, also ceded control of the board of directors to Apollo Management.

 

Per the article cited by the OP, Genting would retain only a 27.7 percent stake in NCLH after the stock sale is completed, not the 95% you stated.

 

I believe this is not entirely correct either.

 

This article:

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=237961:genting-hk-set-to-sell-nclh-stake-for-us$-19-bil&Itemid=3#axzz2vHtqROK2

 

It states that Genting has already liquidated its position down to a current 27.7 percent interest and it plans to sell all its remaining shares for a purported $1.9B.

 

I must also note that this is one huge ROI. The enterprise value of NCL when Appollo purchased was $2 Billion. If Genting sells a ~ 28 percent holding for ~ $2 Billion (using round numbers), the current enterprise (and now Cap value) would be just south of $8 Billion.

[smeyer418]

You're wrong about what percentage of NCL is owned by Genting. In 2007 50% of NCL was acquired by Apollo Management via a $1 billion cash equity investment. At that time, Genting (Star Cruises), although still owning 50% of the company, also ceded control of the board of directors to Apollo Management.

 

Per the article cited by the OP, Genting would retain only a 27.7 percent stake in NCLH after the stock sale is completed, not the 95% you stated.

 

When Genting took its money out, it also got off the hook for another Billion or so in loans it had guaranteed. So Genting did a deal that made them whole and still kept 1/2 interest.

Genting also has paid a billion out for the rights at Adequck in NY...and probably needed some quick cash.

[njhorseman]

I believe this is not entirely correct either.

 

This article:

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=237961:genting-hk-set-to-sell-nclh-stake-for-us$-19-bil&Itemid=3#axzz2vHtqROK2

 

It states that Genting has already liquidated its position down to a current 27.7 percent interest and it plans to sell all its remaining shares for a purported $1.9B.

 

I must also note that this is one huge ROI. The enterprise value of NCL when Appollo purchased was $2 Billion. If Genting sells a ~ 28 percent holding for ~ $2 Billion (using round numbers), the current enterprise (and now Cap value) would be just south of $8 Billion.

 

Right...I think I misread the article as stating they would still retain 27.7% after the sale.

[Seanote]

When Genting took its money out, it also got off the hook for another Billion or so in loans it had guaranteed. So Genting did a deal that made them whole and still kept 1/2 interest.

Genting also has paid a billion out for the rights at Adequck in NY...and probably needed some quick cash.

 

I’m sure Genting will be whole after the sale of their NCL stock. However, it may be impossible to know if the initial Apollo transaction made them whole. Since the books were private back then, there may be no way to tell how much Genting initially invested in NCL, how much paid-in capital they supplied to keep the line afloat during the Colin Vietch years through the Great Hawaii Experiment and how much Genting received through the divestiture of Orient Lines. Colin was a great visionary for the industry, but he didn’t run a very tight ship.

(puns intended)