Empire Resorts votes to allow buyout plan
The parent company of Resorts World Catskills, Empire Resorts, voted to allow K.T. Lim to make an offer to buy out shareholders.
US.- The New York casino Resorts World Catskills hasn’t been able to perform as initially expected. That is why the casino’s parent company, Empire Resorts, voted this week to allow K.T. Lim to make an offer to buy out shareholders of the casino.
The casino tycoon’s family trust Kien Huat Realty III Ltd owns 86% of Empire Resorts. Along with Genting Malaysia Berhad, the magnate wants to buy the remaining 14% shares. The companies offered US$9.74 in cash per share of common stock.
The facility opened its doors in Thompson on February 8, 2018, and has lost approximately US$12.5 million per month. In about a year and a half, Resorts World Catskills has reported US$211.5 million in losses.
An announcement from Empire said that it started a 10-business day process to encourage other buyers besides Lim and Genting, Times Herald-Record reported.
The family trust submitted the proposal during the first week of the month. If approved, Genting Malaysia would assist the company and its subsidiaries pursuant to an arm’s length operations agreement. “We believe that the transactions contemplated by the term sheet should provide comfort and assurance to the company’s various stockholders,” said the company.
“This includes the special committee, as well as the company’s stockholders and lenders, regarding Genting Malaysia’s and Kien Huat’s commitment to pursuing an acquisition of the company expeditiously, thereby providing certainty of value and liquidity to the minority stockholders and creating a path to improve the long term operating performance of the company.”
Kien Huat expected to remain the direct or indirect majority owner of Empire’s equity securities. This is according to a letter signed by officials of both Kien Huat and Genting.
