The controlling shareholders of global casino group Genting Malaysia Bhd have moved closer to the 75 percent threshold for taking private the Bursa Malaysia-listed firm. The parent Genting Bhd now holds 73.859 percent of Genting Malaysia.
The change was a result of action encompassing open-market purchases of Genting Malaysia’s stock, with a consideration of MYR1.97 (US$0.50) per share mentioned in certain filings, all of which were announced on Friday.
The cost of acquiring some additional stock was at a lower premium per share than had been outlined when, in mid-October, the parent Genting Bhd made a circa US$1.59-billion offer to acquire all shares in Genting Malaysia that it didn’t already own.
In a December 2 filing to the bourse, Genting Bhd had said that as of 5pm on December 1, it had managed to secure a 73.133-percent interest in Genting Malaysia at the close of its MYR2.35-per-share takeover offer.
Genting Bhd’s takeover offer became mandatory in early November, after the parent’s stake in Genting Malaysia surpassed 50 percent.
An independent advisor to Genting Malaysia had said that the per-share price being offered at the time by the parent was “not fair and not reasonable”. It recommended existing shareholders “reject” the offer.
Genting Malaysia reported in a February 26 filing that it was back to profit in the fourth quarter, though revenue was down at its monopoly Malaysian casino complex Resorts World Genting outside the capital Kuala Lumpur.
On February 25, S&P Global Ratings said it was downgrading Genting Malaysia’s loss-making affiliate Empire Resorts Inc, a United States-based casino business, to ‘B’, from ‘B+’, on “rising refinancing risk”.
Empire Resorts owns three businesses in the U.S. state of New York: the upstate casino complex Resorts World Catskills; Resorts World Hudson, a casino offering video lottery terminals; and mobile sports betting operation Resorts World Bet.
Genting Malaysia was approved in December for a full commercial casino licence by the New York State Gaming Commission, for the group’s Resorts World New York City venue in the U.S.
The group also controls casinos in the United Kingdom and Egypt, and one in the Bahamas.
On March 2, Genting Malaysia announced that its president Lee Choong Yan had been redesignated to senior advisor, and was due to retire on May 1.
