The pro-native American stance of incoming U.S. President Joe Biden may be positive for Genting Malaysia’s investment in a Mashpee Wampanoag casino project, Maybank wrote in a research note.
If their reservation land continues to be held in trust by the U.S. Department of Interior and they are allowed to resume construction of First Light Resort & Casino, we gather GENM may write back the promissory notes it impaired in 2018, the firm said.
If this happens, Maybank said it would lift its sum-of-the-parts based target price by 12 percent and its forecast for 2022 earnings per share by 17 percent.
Genting took an impairment charge of MYR1.8 billion related to its investment in promissory notes by the tribe. Genting had been appointed to run the casino for seven years for 30 percent of EBIT.
