Genting Bhd pushes past 60% ownership in Genting Malaysia
The parent group continues to grow its stake in its bid to delist Genting Malaysia.
Malaysia.- Genting Bhd has increased its ownership of Genting Malaysia Berhad to more than 60 per cent. Filings to Bursa Malaysia this week confirmed that the parent now controls between 60.61 and 60.63 per cent of the subsidiary following a new round of share acquisitions tied to its takeover offer.
Genting Bhd made a MYR6.74bn (US$1.59bn) bid in mid-October to acquire all remaining shares in Genting Malaysia that it does not already own. The cash offer of MYR2.35 (US$0.55–0.57) per share became mandatory earlier this month after the parent crossed the 50 per cent threshold and triggered local takeover rules. The acceptance deadline has since been extended to December 1.
Genting Malaysia’s operations include casinos in Malaysia, the United Kingdom, Egypt, the United States, and the Bahamas, with its flagship Resorts World Genting remaining Malaysia’s only licensed casino. The company is also bidding for one of the three full-scale commercial casino licences expected to be issued in downstate New York by late 2025. It has proposed a large-scale upgrade of Resorts World New York City in Queens, which analysts believe is a strong contender for approval.
Genting Bhd has stated that consolidating ownership would strengthen Genting Malaysia’s financial profile ahead of the New York licensing process and streamline strategic decision-making. The parent aims to ultimately delist its subsidiary, either via statutory control at 75 per cent ownership or, should it reach 94.94 per cent, through a compulsory minority squeeze-out.
Some independent advisors have argued that the MYR2.35 offer undervalues Genting Malaysia. Kenanga Investment Bank said the proposal is “not fair and not reasonable,” estimating the company’s intrinsic value at MYR3.48 to MYR3.77 per share. Non-interested directors at Genting Malaysia have publicly urged minority shareholders to reject the bid.
