The conglomerate says the deal would improve capital allocation and operational efficiency
[KUALA LUMPUR] Genting said on Monday (Oct 13) it will make a conditional cash offer for all the shares in Genting Malaysia it does not own, in a deal worth RM6.74 billion (S$2.1 billion) as it aims to consolidate control of its casino and hospitality arm.
The move comes as Genting seeks statutory control to strengthen its financial position ahead of a potential US$5.5 billion casino project in New York, where its US unit is bidding for a downstate gaming licence.
Genting said majority ownership would allow it to better support large-scale investments and streamline capital allocation.
The conglomerate, which already holds about 49.4 per cent of Genting Malaysia, offered RM2.35 per share, a 9.8 per cent premium to Genting Malaysia’s last price of RM2.14 before both stocks were suspended on Monday.
The offer is conditional on Genting securing more than 50 per cent of Genting Malaysia’s shares and will be funded through up to RM6.3 billion in debt financing and internal cash, according to the filing.
Genting said it does not intend to maintain Genting Malaysia’s listing if public shareholding falls below regulatory thresholds and may seek a delisting or compulsory acquisition if it reaches 90 per cent.
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The offer price represents premiums of up to 22.9 per cent over Genting Malaysia’s six-month average price, and implies valuation multiples of 9.1 times EV/Ebitda, 53 times earnings, and 1.12 times book value, based on 2024 audited figures.
Genting shares have fallen about 26 per cent year to date, while Genting Malaysia is down 5.3 per cent, LSEG data showed, pressured by weak earnings and cost pressures.
Genting Malaysia posted a profit of RM251.2 million in 2024 and owns Resorts World Genting in Malaysia, as well as casinos in the U.S, UK, Bahamas and Egypt.
The offer is expected to complete by the end of 2025, subject to the Securities Commission Malaysia’s approval.
Trading in both stocks will resume on Tuesday. REUTERS
