Malaysian casino firm Genting Malaysia Bhd is to remain listed, after its parent, Genting Bhd, secured below a 75-percent stake in the company following its takeover bid.
In mid-October, Genting Bhd made a circa US$1.59-billion offer to acquire all shares in Genting Malaysia that it didn’t already own, aiming to delist the unit from Bursa Malaysia. The unit runs the Malaysian casino monopoly Resorts World Genting, as well as casinos in the United States and the Bahamas, and in the United Kingdom and Egypt.
In a Monday filing with the bourse, Genting Bhd said that as of 5pm on December 1, it had managed to secure a 73.133-percent interest in the Genting Malaysia entity at the close of its offer. Another 0.202 percent in acceptances were yet to be vetted.
The increase in its stake was effected via on-market acquisitions of Genting Malaysia shares, as well as acquisition of relevant interest in shares, based on stockholder acceptances relating to the takeover offer made by the parent.
Genting Bhd’s takeover offer became mandatory in early November, after the parent’s stake in Genting Malaysia surpassed 50 percent.
Genting Bhd had said it would not maintain Genting Malaysia’s listing status should the acceptance level for its MYR2.35 (US$0.56) per share offer caused the company to fall below the 25 percent public shareholding spread.
The parent had extended the deadline of the takeover offer for Genting Malaysia to December 1 from November 24, as it had only secured a 57.008-percent stake in its unit by November 13.
Nonetheless, an independent advisor to Genting Malaysia had said that the per-share price being offered by the parent was “not fair and not reasonable”. It recommended existing shareholders “reject” the offer.
