Genting Bhd’s shareholding in its subsidiary Genting Malaysia has now moved above 60% as the company’s mandatory takeover offer continues to make inroads.
Genting Malaysia revealed that its parent now holds a direct 60.609% interest as of Wednesday following another series of transactions throughout the week.
Genting Bhd had held 49.44% of Genting Malaysia shares before first announcing a voluntary takeover offer in mid-October – an offer that turned mandatory last week after it triggered a Malaysia Bourse requirement that states any company acquiring more than 2.0% of shares within a six-month period must launch a mandatory offer at a price not lower than the highest price paid by the bidder for any of those shares in the period.
The company has acquired a little over 3.5% in Genting Malaysia shares since its offer became mandatory a week ago.
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%.
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.
The company’s bid for greater control of arguably its most important subsidiary 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.
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