Genting Bhd to proceed with takeover of Genting Malaysia

Malaysian casino giant Genting Bhd has confirmed that its conditional voluntary takeover offer for its Genting Malaysia Bhd subsidiary will proceed after acquiring sufficient shares on the open market to surpass the 50% ownership threshold.

The company, which announced in mid-October its intention to acquire all remaining shares in Genting Malaysia that it did not already own, revealed that its stake has risen from 49.36% to 50.11%, effectively meeting a key condition for the offer to move forward, Inside Asian Gaming reported.

Under the offer, shareholders can sell their remaining shares at MYR2.35 each. The offer will remain open until 5:00 PM Malaysian time on Monday, 24 October.

Genting Bhd has previously indicated that it plans to delist Genting Malaysia either through statutory control at 75% ownership or via compulsory acquisition if ownership reaches 94.94%.

The takeover bid is tied to the group’s strategic interest in securing a larger stake in Resorts World New York City, contingent on the property receiving a full commercial casino license as anticipated.

Genting Malaysia also oversees the group’s Resorts World Genting in Malaysia and, through parent company Empire Resorts, operates Resorts World Catskills.

However, Maybank Investment Bank has advised shareholders to reject the MYR2.35-per-share offer, noting that it undervalues the company based on the latest projections.