GGRAsia – GEN Singapore says no ongoing talks on potential takeover

GEN Singapore says no ongoing talks on potential takeover

Jul 18, 2022 Newsdesk Latest News, Singapore, Top of the deck

Casino operator Genting Singapore Ltd said on Sunday it was “not aware of, nor has it been party to, any ongoing discussions” on a potential transaction involving the company.

The company said in a statement to the Singapore Exchange that Genting Bhd executive chairman Lim Kok Thay – who also chairs Genting Singapore – had informed the latter that Genting Bhd “had received an unsolicited approach for its shareholding” in Genting Singapore. That approach had “not been pursued”, Genting Singapore said, citing Mr Lim.

The Genting Singapore filing did not identify the party putting forward the “unsolicited approach”.

Malaysia-based Genting Bhd, backed by the Lim family, controls 53 percent of Genting Singapore.

Genting Singapore runs the Resorts World Sentosa casino resort (pictured in a file photo) in Singapore, as part of a casino duopoly in the city-state, alongside Marina Bay Sands, run by a unit of U.S.-based Las Vegas Sands Corp.

Bloomberg reported on Friday that United States-based casino operator MGM Resorts International recently had approached Malaysian entrepreneurs the Lim family expressing interest in a takeover of Genting Singapore. The reported added – citing sources it did not identify – that the talks did not lead to an agreement. It mentioned that other potential suitors had also made preliminary study of a takeover of Genting Singapore.

That news report coincided with a jump in Genting Singapore’s stock price: it had increased by as much as 9.3 percent before the company called for a trading halt at 1pm (local time) on Friday.

Genting Singapore’s Sunday filing followed queries from local regulator Singapore Exchange Securities Trading Ltd on the reason for the sharp stock price jump. The trading halt on Genting Singapore’s shares was lifted on Monday (July 18) morning.

In May, Genting Singapore reported a net profit of SGD40.4 million (US$28.8 million) for the first quarter of 2022, up 17.3 percent from the previous quarter. It represented a 16.9-percent increase in year-on-year terms.