Cruise line operator Star Cruises, part of Genting Bhd, said on Jan 23 it will raise HK$653.35 million (RM294 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 a 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 US$3.4 billion (RM11.9 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. -- Reuters