The group has submitted a proposal to acquire all of the outstanding equity of Empire Resorts.
US.- Kien Huat Reality III, owner of 86% of the stock in Empire Resorts, has submitted its proposal to purchase all of the outstanding equity in the company. Kien Huat had informed a special committee last month of its intentions to buy up the equity.
Subject to the special committee’s approval, a subsidiary of Genting Malaysia would acquire 13.2 million shares of Kien’s common stock. The group would then purchase Empire Resorts’ outstanding equity. Kien Huat expected to remain the direct or indirect majority owner of Empire’s equity securities. This is according to a letter signed by top officials of both Kien Huat and Genting, Mid Hudson News reported.
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.
“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.”