Genting Malaysia possible operator of Resorts World LV

    Resorts World Las Vegas

    Analysts from Affin Hwang Capital have outlined a scenario in which Genting Malaysia becomes the operator of the US$4 billion Resort World Las Vegas once it is completed in late 2020, in a bid to raise its share price.  

    The analysts, who published a note on The Edge Financial Daily on Wednesday, outlined several scenarios that could help Genting Malaysia recover from its share price tumble following the announcement and implementation of a gaming tax hike in Malaysia last year. 

    One of the possible options is a listing of its US assets, including Resorts World Catskills, Resorts World New York, and Resorts World Bimini. 

    The analysts said they believe the assets could be worth as much as US$1.5 to $1.9 billion in 2025. 

    However, for this to go ahead, analysts said that Genting Malaysia would need to first turn the business around, which has been losing money.

    “Investors would be eager for Genting Malaysia’s management to turn around RWC as soon as possible. The total invested amount is likely to be higher as an equity injection of about US$200 million to US$250 million is still needed to refinance some of RWC’s debt.”

    The analysts also said it believes there is a possibility that Genting Malaysia could become the operator of Resorts World Las Vegas. 

    “Although Genting Bhd is the owner of Resort World Las Vegas, we believe that there is a possibility that Genting Malaysia could play a role in the casino once it is completed, most likely as an operator of the casino.”

    Analysts have maintained its “hold” rating. 

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