Genting Berhad has announced a conditional voluntary takeover offer worth MYR6.74 billion ($1.6 billion) to acquire all remaining shares in Genting Malaysia Berhad that it does not already own, aiming to gain full control and potentially delist its leisure and hospitality subsidiary.
The Malaysian conglomerate is offering MYR2.35 ($0.49) in cash per share for the 50.64 percent stake, or about 2.87 billion shares, it does not currently hold in Genting Malaysia, according to a filing to Bursa Malaysia on October 13th. Genting presently owns 49.36 percent of Genting Malaysia’s shares.
The offer represents a premium ranging from 9.8 to 22.9 percent over Genting Malaysia’s recent trading prices. If fully accepted, the total cash consideration will amount to MYR6.74 billion ($1.6 billion), financed through a mix of approximately MYR6.3 billion ($1.5 billion) in debt and internally generated funds.
The takeover bid will become unconditional once Genting secures acceptances that raise its ownership beyond the 50 percent threshold. Upon achieving 90 percent or more, Genting intends to delist Genting Malaysia from Bursa Malaysia and may invoke compulsory acquisition provisions under Malaysia’s Capital Markets and Services Act to purchase any remaining shares.
The proposed privatization seeks to strengthen Genting’s financial position and consolidate its global hospitality portfolio. The company said gaining majority control of Genting Malaysia would ‘cement Genting’s position as the holding company’ and allow it to consolidate the subsidiary’s financials, providing greater flexibility to support large-scale projects such as the proposed $5.5 billion (MYR29.6 billion) integrated resort development in New York, pending a state casino license decision.
Genting Malaysia operates major properties including Resorts World Genting in Malaysia, Resorts World New York City, Resorts World Catskills, and other venues in the UK, Bahamas, and Egypt.
For 2024, Genting Malaysia reported a profit after tax and minority interests of MYR251.2 million ($53 million) and net assets of MYR11.9 billion ($2.47 billion).
AmInvestment Bank is acting as the principal adviser for the deal, which is expected to be completed by the fourth quarter of 2025.
