Genting announced on Monday that it’s making a cash offer to purchase all outstanding Genting Malaysia shares it doesn’t currently own for MYR 2.35 (US$0.56) apiece, a nearly 10% premium on the last reported share price.
The proposal to acquire the 50.64% stake would cost MYR 6.74bn (US$1.6bn). If the number of public shareholders falls below the relevant regulatory level, the company will be privatized.
Genting wants more control over capital allocation and the ability to better support larger projects
Core reasons for this move are that Genting wants more control over capital allocation and the ability to better support larger projects by having majority ownership. One of its major prospective projects is expanding its existing Resorts World New York City slot parlor into a full-scale commercial casino if it gets one of three available licenses from the New York State Gaming Commission (NYSGC). Genting is among the final four applicants with a chance to get one of the licenses.
