KUALA LUMPUR (Oct 28): Cruise ship operator Genting Hong Kong Ltd (Genting HK) is selling Boeing 787-8 aircraft to GTL, an indirect wholly-owned subsidiary of Genting Bhd, for US$25 million (RM103.91 million).

GTL is based in Delaware.

In a statement to The Stock Exchange of Hong Kong Ltd, Genting HK said its indirect wholly-owned subsidiary Crystal and TVPX Aircraft have entered into the sale and purchase agreement with GTL and Bank of Utah for the disposal.

Taking into consideration the net proceeds from the disposal of approximately US$24.9 million (net of about US$100,000 transaction costs) and the carrying value of the aircraft of approximately US$61.9 million as at Sept 30, 2021, the disposal is expected to result in a loss of approximately US$37 million (RM153.79 million).

Genting HK said the disposal is part of its continual exercise in disposing of non-core assets, while enabling the group to enhance liquidity position in light of the uncertainties resulting from the Covid-19 pandemic.

The disposal is also expected to save the cost associated with the maintenance of the aircraft, it added.

It is intended that the sale proceeds for the disposal will be used as general working capital for the group.

At 10.10am, Genting shed one sen to RM5.19, valuing it at RM20.12 billion.