Apollo invests $1bn in NCL

[eroller]

Seatrade Insider reports that private equity firm Apollo has just invested $1bn into Norwegian Cruise Line. Great news for NCL as this will give them the needed capital to expand and improve the product. I'm not sure how much control Apollo will have over NCL with that kind of investment.

 

Apollo is the same private equity firm that purchased Oceania Cruises. Looks like they really want to get into the cruise business.

 

Good luck to NCL!

 

Ernie

[Druke I]

The press release (also on the NCL board) indicates that Apollo did not purchase Oceania, just invested a lot of money in Oceania.

 

The same press release indicates Apollo will have a 50% share of NCL stock, with Star Cruises (current owner) retaining 50%. Apollo will have more seats on the board than Star.

 

Semantics perhaps, but Apollo did not purchase Oceania.

[eroller]

I guess it depends on what press release you read. For all intents and purposes, Apollo has purchased Oceania, it's debts and it's assets. As Oceania is a private company, it's not like Apollo has purchased stock. They basically bought the company. This is from USA Today back in 2/2007.

 

Ernie

 

 

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USA Today

Oceania Cruises sold to new owners

 

There's big news this week for fans of Oceania Cruises, the four-year-old line founded by former Renaissance Cruises executives. New York-based private equity fund Apollo Management will pay $850 million for the company and its three 684-passenger ships, all former Renaissance vessels.

 

Oceania was founded in the wake of Renaissance's collapse in 2001, which followed the downturn in tourism after the 9/11 attacks. Like Renaissance, it has a loyal following. What does the takeover mean for Oceania lovers? In the day-to-day of ship operations, probably not all that much. Apollo praised the current management in its annoucement of the takeover this week, and it appears the line will continue to operate as it has before.