Genting Bhd issues another US$328 million in notes, launches separate US$1.22 billion notes program in pursuit of Genting Malaysia takeover

Genting Berhad has ramped up its liquidity-boosting efforts in pursuit of full control of subsidiary Genting Malaysia, issuing another MYR1.35 billion (US$328 million) in medium-term notes and launching a separate MYR5 billion (US$1.22 billion) notes program.

In a Friday filing, the company said it had issued MYR1.35 billion in nominal value of medium-term notes through wholly-owned subsidiary Genting RMTN under an existing MYR10 billion (US$2.40 billion) Medium Term Notes Programme.

This follows on from three previous transactions over the past month in which Genting Bhd has issued a combined MYR1.65 billion (US$401 million) in notes under the same program.

The company revealed via a separate filing that it has also made a lodgement with the Securities Commission Malaysia for the establishment of a new MYR5 billion unrated Medium Term Notes Programme through another of its wholly-owned subsidiaries, Genting Vista Berhad.

The proceeds from the program are to be utilized for group operating expenses, the refinancing of borrowings, investment and capital expenditure, general funding requirements and other corporate purposes, it explained.

However, both filings also referenced the need to part-finance the acquisition of ordinary shares in Genting Malaysia pursuant to Genting Bhd’s takeover offer. Specifically, Genting Bhd referenced its intention to acquire “all remaining ordinary shares in Genting Malaysia Berhad which are not already held by the company pursuant to the takeover offer” – suggesting it still plans to push its stake in Genting Malaysia above 75%, allowing it to pursue privatization.

As reported by Inside Asian Gaming, Genting Bhd last week resumed the on-market purchase of Genting Malaysia shares after its mandatory takeover offer closed just shy of the 75% threshold at 73.13%.