Genting U.S. expansion raises eyebrows

Resorts World Catskills
Resorts World Catskills

Genting Malaysia is pushing ahead with its overseas expansion plans, though analysts have expressed concern its recent acquisition of Empire Resorts in the U.S. will weigh on long-term earnings.  In August, Malaysia’s casino monopoly announced plans to privatize the currently-loss-making Empire Resorts, the company which owns and operates Resorts World Catskills in New York. RWC began operations on 8 Feb, 2018 and features a 322 all-suite hotel, 1,600 slot machines and over 150 gaming tables. The acquisition announcement triggered a 12 percent plunge in the company’s share price due to concern about the impact of taking on Empire, which had reportedly been close to filing for Chapter 11 bankruptcy protection.  The purchase will be made by Genting’s wholly-owned subsidiary Genting (USA), which will acquire 13.2 million shares in Empire from its single largest shareholder, Kien Huat Realty III for $128.6 million. The 13.2 million shares represent around 46 percent of Empire’s common stock....

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