{"id":777033132,"date":"2025-10-15T08:47:01","date_gmt":"2025-10-15T11:47:01","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777033132"},"modified":"2026-04-21T18:11:34","modified_gmt":"2026-04-21T21:11:34","slug":"genting-berhads-us1-6bn-bid-to-privatise-genting-malaysia-sparks-optimism-and-concerns","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/genting-berhads-us1-6bn-bid-to-privatise-genting-malaysia-sparks-optimism-and-concerns","title":{"rendered":"Genting Berhad\u2019s US$1.6bn bid to privatise Genting Malaysia sparks optimism and concerns"},"content":{"rendered":"\n

Analysts highlight long-term value potential but warn of increased leverage and challenges in securing shareholder approval for delisting.<\/p>\n\n\n\n\n\n\n\n

Malaysia.- Genting Berhad, the Malaysian conglomerate led by billionaire Lim Kok Thay, has launched a MYR6.74bn (US$1.59bn) conditional voluntary takeover offer to acquire the remaining 50.64 per cent of Genting Malaysia Berhad<\/a>, aiming to delist the leisure and hospitality subsidiary from Bursa Malaysia. The offer, priced at MYR2.35 (US$0.55) per share, represents a 9.8 per cent premium over Genting Malaysia\u2019s last traded price of MYR2.14 (US$0.50), sparking a rise in share prices but raising concerns about debt and shareholder acceptance.<\/p>\n\n\n\n

Genting Berhad plans to raise MYR6.3bn (US$1.4bn) through new debt at a 5.2 per cent interest rate, supplemented by internal funds. Maybank Investment Bank suggests the privatisation could unlock significant long-term value, citing potential catalysts such as the revaluation of Genting Malaysia\u2019s land in Miami, the possible sale of Empire Resorts\u2019 non-gaming assets in New York, and the prospect of securing a downstate New York casino licence<\/a>. <\/p>\n\n\n\n

Analyst Samuel Yin Shao Yang said the move could boost Genting\u2019s earnings by up to 51 per cent, and Maybank raised its target price for Genting to MYR3.94, maintaining a \u201cBuy\u201d recommendation. Public Investment Bank upgraded Genting Malaysia to \u201cBuy,\u201d while Hong Leong Investment Bank advised shareholders to accept the offer, noting its 14.1 per cent premium over its previous MYR2.06 target price.<\/p>\n\n\n\n

However, CreditSights flagged the move as credit negative for Genting Berhad, projecting net leverage to rise from 2.9x to 3.8\u20133.9x, increasing refinancing risks for its US$1.5bn bond due in January 2027. The firm doubts Genting will secure the 75 per cent shareholder approval needed for delisting, citing the modest premium and Genting Malaysia\u2019s underperformance since 2021. Analysts suggested Genting may need to raise the offer price by the November 28 deadline to attract investors holding losses. <\/p>\n\n\n\n

For Genting Malaysia, the deal is seen as modestly credit positive. However, delisting could raise governance concerns due to Genting Malaysia\u2019s history of related-party transactions, such as the Empire Resorts acquisition. The bid aligns with Lim Kok Thay\u2019s vision to streamline the group\u2019s portfolio, following a leadership transition in February 2025<\/a>.<\/p>\n\n\n

\n\t\t\tSee also:<\/span><\/p>\n
\n\t\t\t\t\"\"<\/p>\n

\n\t\t\t\t\tSee also:<\/span> Gregorio Araneta sells controlling stake in PhilWeb<\/a>\n\t\t\t\t<\/p>\n<\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Analysts highlight long-term value potential but warn of increased leverage and challenges in securing shareholder approval for delisting.<\/p>\n","protected":false},"author":680,"featured_media":18062,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Genting Berhad has launched a MYR6.74bn conditional voluntary takeover bid for Genting Malaysia Berhad, aiming for delisting from Bursa Malaysia. While analysts highlight potential long-term value unlock through asset revaluation and new gaming licenses, concerns persist regarding increased leverage, refinancing risks, and the challenge of securing the requisite 75% shareholder approval given the modest premium and governance considerations.","focusai_entities":"Genting Berhad, Genting Malaysia Berhad, Lim Kok Thay, Maybank Investment Bank, Samuel Yin Shao Yang, Public Investment Bank, Hong Leong Investment Bank, CreditSights, Empire Resorts, PhilWeb","focusai_location":"Malaysia, Miami, New York","focusai_target_profile":"ceo_executive (1.0), regulator (0.8), compliance_legal (0.8), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Shareholder Approval Strategy?","query":"Given CreditSights' skepticism regarding the 75% shareholder approval threshold, what specific strategies might Genting Berhad employ to incentivize minority shareholders, potentially including a revised offer price, before the November 28 deadline?"},{"label":"Leverage & Refinancing Impact?","query":"How will the projected increase in net leverage from 2.9x to 3.8-3.9x impact Genting Berhad's credit rating and its ability to refinance the US$1.5bn bond due in January 2027, particularly in a rising interest rate environment?"}],"footnotes":""},"categories":[157,16333],"tags":[24657,19394,226],"class_list":["post-777033132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-south-east-asia-news","tag-genting-berhad","tag-genting-malaysia","tag-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777033132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/680"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777033132"}],"version-history":[{"count":6,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777033132\/revisions"}],"predecessor-version":[{"id":777033160,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777033132\/revisions\/777033160"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/18062"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777033132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777033132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777033132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}