US-based cruise line Carnival is reportedly in preliminary talks with Saudi Arabia’s sovereign wealth fund for the divestment of its luxury cruise brand, Seabourn.

The deal would provide Carnival with more capital, as its shares declined by more than 40% in the last three months, reported CNBC.

Discussions between the Saudi fund, called Public Investment Fund, and Carnival are still in progress.

Neither party has commented on the matter.

The divestment talks come shortly after Carnival pooled more than $1bn in the debt market at a 10% yield, stated the news agency.

Seabourn consists of six ships, which travel to destinations including Antarctica, the Middle East and the Caribbean.

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In 2009, Seabourn debuted its luxury ship Seabourn Odyssey, which accommodates 458 guests.

Seabourn Odyssey was followed by Seabourn Sojourn in 2010 and Seabourn Quest in 2011. It also launched the 600-passenger ships Seabourn Encore and Seabourn Ovation in 2016 and 2018, respectively.

Last year, the Saudi sovereign wealth fund acquired a minority interest in Carnival. According to FactSet, the fund currently owns a 5.1% interest in Carnival.

Earlier this month, Carnival Cruise Line broke ground on a new cruise port destination on the south side of Grand Bahama Island.

The project is being supported by the Grand Bahama Port Authority as well as the Government of The Bahamas.