for early access to the latest igaming videos!
and get the latest igaming news first!
Genting Berhad continued to increase the pace of its financial moves with the issuance of an additional MYR255 million (approximately US$61.7 million) in medium-term notes via its wholly-owned subsidiary Genting RMTN. The company has issued the third piece of notes in consecutive weeks under Genting’s MYR10 billion (US$2.40 billion) Medium Term Notes Programme to finance the group’s acquisition bid for the remaining shares in Genting Malaysia Berhad.
Growing Stake and Financing Strategy
The company recently launched a conditional voluntary takeover offer for Genting Malaysia in mid-October, a move that has since become a mandatory offer. Since the announcement, Genting Berhad’s ownership in Genting Malaysia has surged from 49.36% to more than 64% as it continues buying outstanding shares. In the latest filing, Genting confirmed that proceeds from the new notes issuance will “part-finance the acquisition of all the remaining ordinary shares in Genting Malaysia Berhad excluding treasury shares not already held by the company.”
This financial strategy underscores a clear intent by Genting to consolidate its hold on Genting Malaysia, which controls major assets that include Resorts World Genting in Malaysia, Resorts World Catskills, and most importantly, Resorts World New York City.
The New York Expansion and Ownership Ambitions
One of the main motivating factors behind the takeover bid seems to be Genting’s desire to acquire a greater stake in Resorts World New York City. Since New York officials are expected to decide whether to grant the property a full commercial casino license very soon, possibly within this week, Genting would like to be well-positioned for such an opportunity. The casino license will provide the right to operate as a full-scale commercial casino, which can increase its business prospects significantly.
Market Sentiment and Analyst Perspectives
In spite of all the highly publicized plans and ambitions, some are still questioning the success of this acquisition and the price of the offer. Maybank Investment Bank has recommended that shareholders of Genting Malaysia reject the current takeover offer of MYR2.35 apiece, arguing that such a price significantly undervalues the company based on recent financial projections.
Analysts at Nomura, however, have expressed their doubts over the possibility of Genting Berhad achieving a full ownership threshold. Their assessment suggests that while Genting is fast approaching a 65% ownership level, they are unlikely to move beyond this mark.
Funding Timeline and Future Prospects
Genting’s note issuances through November, including the MYR900 million and MYR495 million tranches earlier this month, plus the latest MYR255 million, are integral parts of its funding plan. This approach seems to be designed to ensure Genting has adequate capital lined up as it pushes to complete the takeover bid while awaiting the key regulatory decision in New York.
A pivotal moment for the company and its shareholders may soon arrive with the New York casino license decision expected imminently, an outcome likely to influence Genting Malaysia’s market value and Genting Berhad’s strategic direction.
Casino Industry Focus Remains Sharp
While Genting did look at casino licensing in New York City, the larger landscape the company was trying to navigate included a Resorts World portfolio spanning from Malaysia to the United States. Obtaining a majority stake in Genting Malaysia would consolidate the leadership of Genting Berhad and allow it to leverage high-growth opportunities more effectively, especially in the US gaming market.
A Crucial Crossroads for Genting
At this juncture, these concerted financial moves and ownership made by Genting Berhad placed it on the edge of a significant transformation. Thus, it is unmistakably leveraging this present acquisition window to firm up holdings in preparation for any regulatory go signal that may redefine future earnings trajectories.
This ongoing story will develop as regulatory decisions loom and market reactions unfold in the coming weeks, shaping the path forward for one of Malaysia’s and the region’s most prominent gaming conglomerates.
Source: Inside Asian Gaming (IAG)
