StarCruises Relaunches in Asia Three Years After Bankruptcy
Three years after the bankruptcy of Genting Hong Kong which resulted in the collapse of both Star Cruises and Dream Cruises the corporation has relaunched the brands. Earlier this year they announced plans to rebrand away from Resorts World Cruises back to the traditional brand names as part of the future growth strategy for the company.
Star Cruises was launched 30 years ago and became known as one of the pioneers of modern cruising in Asia. The brand went on to build cruise ships at Meyer Werft in Germany and in 2000 acquired the faltering Norwegian Cruise Line which had been one of the pioneers in North America. After rehabilitating Norwegian including the introduction of “freestyle cruising” (cruising without schedules or assigned dining arrangements) the company also launched Dream Cruises in Asia as a premium brand.
The 2022 bankruptcy of the German shipyard owned by the company, MV Werften, caused the collapse of the parent company and its cruise lines. The ships were sold but Genting was able to reestablish the business as Resorts World Cruises with two of its former ships. Last year, the company acquired the 77,400 gross tons built in 1997 by Fincantieri and operates as P&O Cruises Australia’s Pacific Explorer.
Renamed Star Voyager and having completed a $50 million refit, the cruise ship returned to service on March 26 in Singapore and March 29 in Indonesia. The ship will be sailing a circuit between Singapore, Jakarta, Melaka, and Ho Chi Minh City officially relaunching the brand as StarCruises. She is joined by the rechristened Star Navigator (77,300 gross tons), introduced in 1999 as SuperStar Virgo. She resumed sailing in 2023 as Resorts World One and operates seasonally from Singapore and Taiwan.
“We are thrilled and honored to return to our roots with the launch of the revitalized StarCruises and Dream Cruises brands, offering an enhanced cruising experience," said Michael Goh, President of StarCruises and Dream Cruises. “To celebrate this milestone, we are also excited to introduce the Star Voyager, as she embarks on her maiden voyage from Singapore, exploring the wonders of Southeast Asia.”
StarCruises will be positioned as an affordable cruise brand with the two ships. The group says its focus will be on ships with accommodations for approximately 2,000 passengers.
Dream Cruises was also restarted as the premium brand within the group. It will continue to operate the Genting Dream (150,600 gross tons). The ship was built for the company by Meyer Werft and entered service in 2016. It sails year-round from Singapore.
A.P. Moller Holding Reverses Course Offering to Buy Svitzer
Denmark's A.P. Moller Holding (APMH), an investment company and the parent company of the A.P. Moller Group, believes that tug and towing company Svitzer has failed to gain a proper valuation from the investment community. A year after the company was spun off from Maersk, the parent company now wants to take Svitzer private in a deal valued at about 9 billion kroner ($1.3 billion).
Svitzer, which had been part of A.P. Moller-Maersk for 45 years, demerged from the shipping giant last year in a move that was described as a “natural next chapter” for the towage company’s growth journey. Listed on the Copenhagen Stock Exchange, APMH is currently the largest shareholder in Svitzer with a 47 percent stake and it is offering a 31.3 percent premium compared to the three-month volume-weighted average price for the remaining shares, or DKK 285 (approximately $41.25) per share.
APMH says that the listing has done little to create the desired platform for growth that is essential for maintaining Svitzer’s market position in a competitive and fragmented industry undergoing consolidation. If the status quo is maintained, it says this could have detrimental effects in terms of limiting Svitzer’s ability to pursue opportunities in the market.
“Since Svitzer was listed, the company has consistently delivered results above expectations. However, we have not seen this reflected in the valuation of the share, which means that the listing has not offered a foundation from which Svitzer can grow,” said Martin Larsen, APMH's chief finance officer.
He added that Svitzer would be better supported through private ownership and that, with the financial support of APMH, the company would be better positioned to strengthen its market position and capitalize on the opportunities in the market.
Svitzer’s independent directors agreed announcing they supported the cash offer after carefully considering the offer and alternative options for the shareholders. They highlighted the offer is a 42.5 percent premium compared to the opening price on the first day of trading after the spin-off. APMH reports it has already secured support for the offer from other shareholders, meaning it now has control of 61 percent of Svitzer’s share capital. APMH requires approval from 90 percent of Svitzer’s shareholders to complete the transaction and delist Svitzer. They are targeting the beginning of May to complete the transaction.
“We aim to secure Svitzer's market position and growth and are offering an attractive price above the highest historical closing price and well above current trading, reflecting Svitzer’s strong performance,” noted Larsen.
Upon completion of the deal, Svitzer will remain an independent firm with its current management and strategy. Svitzer recorded another solid year in its financial performance last year. Revenues rose by 8.9 percent to 6.3 billion kroner ($911 million) from 5.7 billion kroner ($824.2 million) in 2023. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to 1.8 billion kroner ($260.3 million) from 1.6 billion kroner ($231.4 million).
Svitzer reported today that during the first two months of 2025, its revenues were up 2.6 percent while EBITDA earnings declined by approximately 1 percent. The financial performance it reported was driven mainly by positive development in the Americas operating segment, while harbor towage overall decreased by 4.8 percent. In March, Svitzer reported that it expects revenues in 2025 to grow by around 1-5 percent and that EBITDA earnings would grow by around 0-7 percent compared to 2024. Svitzer was founded in 1833 and serves approximately 2,000 customers in more than 140 ports and 40 terminals across 37 countries and said it expects to invest up to $190 million CAPEX in 2025.
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