Malaysia-based conglomerate Genting Bhd now controls 60.63 percent of Genting Malaysia Bhd, amid the parent’s takeover bid for the subsidiary, a global casino operator, according to Wednesday filings to Bursa Malaysia.
The increase was effected via acquisition of relevant interest in Genting Malaysia shares, based on stockholder acceptances relating to the takeover offer made by the parent. The latest acquisitions were via entities linked to Genting Bhd.
In mid-October, Genting Bhd made a circa US$1.59-billion bid to acquire all shares in Genting Malaysia that it didn’t already own, aiming to delist the unit from Bursa Malaysia.
Genting Bhd’s takeover offer became mandatory earlier this month, after the parent’s stake in Genting Malaysia surpassed 50 percent.
The parent aims to acquire all the remaining ordinary shares in Genting Malaysia – excluding treasury shares – that it does not already hold, for a cash offer price of MYR2.35 (US$0.55) per share. The closing time and date for acceptance has been extended to December 1, from a prior November 24 deadline.
Nonetheless, an independent advisor to Genting Malaysia said last week that the per-share price being offered by the parent is “not fair and not reasonable”. It recommended existing shareholders “reject” the MYR2.35 offer.
Genting Malaysia operates a number of casinos around the world. The firm’s flagship property is Resorts World Genting, Malaysia’s sole licensed casino. The company also runs gaming operations in the United Kingdom, Egypt, the United States, and the Bahamas.
According to the parent, the takeover would enhance Genting Malaysia’s financial profile as the latter is in the run for one of three full-scale downstate New York casino licences that are likely to be awarded by the end of 2025.
Genting Malaysia is proposing to extend and upgrade its existing Resorts World New York City slot-machine and electronic gaming facility in the borough of Queens, New York City.
