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Star Cruises Raises $83 Million, Takes Stake in Macau

Malaysian cruise line operator Star Cruises, part of Genting, said Tuesday it will raise HK$653.35 million (US$84 million) by selling new shares, and buy a stake in a Macau casino run by gambling mogul Stanley Ho.

Hong Kong and Singapore-listed Star Cruises said in a statement it has agreed to issue 255 million new shares at HK$2.29 per share, a 9% discount to its last closing share price in Hong Kong.

Star Cruises shares have been suspended from trading since Jan. 11 and were last traded at US$0.385 in Singapore.

In addition, Star Cruises has also entered into a share option agreement for HK$71.4 million for another 255 million shares to be exercisable at HK$3.00 per share.

Star Cruises did not say who the shares will be placed with but said the total issue of shares plus option shares would amount to 7.52% of the company. Last week, media reports have said the shares would be sold to Ho.

Star Cruises said the money raised will be used fund its share of the $3.4 billion casino resort in Singapore's Sentosa island which it is developing with sister company Genting International.

Both Star Cruises and Genting International have also signed an agreement to take a stake in a property project in Macau, the Treasury Island Entertainment Complex, for HK$1.47 billion.

They have an agreement with Sociedade de Jogos de Macau, the gaming company belonging to Ho, whereby the latter can operate a casino hotel on the site.