Genting Berhad has issued another MYR495 million (US$119 million) in notes under its MYR10 billion (US$2.40 billion) Medium Term Notes Programme as it looks to fund its ongoing acquisition of shares in Genting Malaysia.
The notes, issued by wholly-owned subsidiary Genting RMTN, follow an earlier MYR900 million (US$216 million) notes issue less than two weeks earlier.
Genting Bhd, which last month launched a conditional voluntary takeover offer for subsidiary Genting Malaysia – now a mandatory takeover offer – has seen its stake in the company increase from 49.36% at time of the initial announcement to greater than 60%. As of Friday, it held a 61.718% interest.
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.
However, Nomura analysts have expressed doubt over Genting Bhd’s ability to achieve its ownership goals, suggesting in a recent note that it will likely reach around 65% ownership of Genting Malaysia instead.
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