It’s been reported that MGM Resorts approached the Lim family expressing interest in a takeover of Genting Singapore but that talks were not fruitful.
Singapore.- Genting Singapore has reportedly been attracting takeover interest as tourists begin to return to Singapore. According to Bloomberg, MGM Resorts International contacted the company’s controlling shareholder, the Lim family to explore a deal.
It’s said that MGM’s approach didn’t bear fruit but that other potential buyers are now in the early stages of studying a potential approach. Shares in Genting Singapore rose as much as 9.3 per cent on the news, reaching their highest price in nearly two years, sparking trading requests. The company’s market capitalization stands at about S$9.8bn (US$7bn).
In May, Genting Singapore posted a net profit of SG$40.4m (US$28.9m), up 17.3 per cent quarter-on-quarter and up 16.9 per cent when compared to last year.
Genting Singapore’s Resorts World Sentosa (RWS) has confirmed it will carry out a phased refurbishment from this quarter to 2023. The plan will cover 1,200 units across its three hotels: Hard Rock Hotel Singapore, Hotel Michael and the Festive Hotel.
In February, the company revealed it would spend an aggregate of SGD400m (US$294m) this year for phase two of the complex. The improvements are part of a S$4.5bn spending commitment to the Singapore government announced by Genting Singapore in April 2019 under which it will retain half of the Singapore casino duopoly until 2030.