GGRAsia – Genting HK US$97mln deal with Finnish engineering firm

Genting HK US$97mln deal with Finnish engineering firm

Jun 27, 2018 Newsdesk Latest News, Macau, Top of the deck

A German shipbuilder that is an indirect wholly-owned unit of casino cruise ship operator Genting Hong Kong Ltd, has agreed to pay just over EUR83.2 million (US$97.1 million) to a Finnish marine engineering firm for fixtures and equipment in new ships commissioned by Genting Hong Kong that are due for completion between now and the year 2021.

The German unit – MV Werften Wismar GmbH – will pay the consideration in instalments to Finland’s Almaco Group Oy out of the internal resources of Genting Hong Kong, the latter said in a Tuesday filing to the Hong Kong bourse.

The price was agreed after “arm’s length negotiations between the parties with reference to, among others, the market value of similar systems for installation onto, and use by, comparable cruises at the time of negotiation,” said Genting Hong Kong.

The ships commissioned by Genting Hong Kong are being built by MV Werften.

Almaco is described as a full service contractor for new construction, and for modernisation of vessels’ cabins, wet units, public spaces, galleys, provision stores, refrigeration machinery and living quarters.

A previous deal between the German firm and Almaco was for the latter to supply equipment to a maximum consideration of just under EUR26.1 million.

In July 2016 Genting Hong Kong – which operates cruise ships across several customer segments and is also an investor in the Resorts World Manila casino venue in the Philippine capital Manila – said it was spending more than EUR100 million to upgrade its then recently-acquired shipyards in Germany.

It said three shipyards acquired by Genting Hong Kong in April that year were to be managed under the brand MV Werften and to focus on building large ships. Another Germany-based shipyard, Lloyd Werft Bremerhaven AG, acquired in 2015, was to focus on repairs, conversion and building of mega yachts, Genting Hong Kong said in a press release at the time.