Malaysian casino giant Genting Bhd has confirmed its conditional voluntary takeover offer for subsidiary Genting Malaysia will proceed after acquiring enough shares on the open market to lift its current holding above the 50.0% threshold.
Having announced in mid-October its intention to acquire all shares in Genting Malaysia that it didn’t already own, the company said Monday that it had since lifted its stake from 49.36% originally to 50.11% currently – effectively fulfilling a key condition for the offer to proceed.
The offer to shareholders to acquire all remaining shares at a price of MYR2.35 per share will now be open and available until 5pm Malaysian time on Monday 24 November.
Genting Bhd revealed in October that it plans to delist Genting Malaysia either by gaining statutory control, effective at 75% ownership, or compulsory acquisition should ownership reach 94.94%.
The bid is linked to the group’s desire to own a larger stake in Genting Malaysia’s Resorts World New York City should the property be granted a full commercial casino license as expected.
Aside from Resorts World New York City and Resorts World Catskills parent Empire Resorts, Genting Malaysia also controls the group’s Malaysia flagship Resorts World Genting.
Notably, Maybank Investment Bank has suggested that Genting Malaysia shareholders should reject the takeover offer of MYR2.35 per share because it undervalues the company based on latest projections.
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