US casino giant MGM Resorts International has reportedly held discussions with Malaysia’s Lim family over a potential takeover or investment in Genting Singapore, the parent firm of Singapore’s Resorts World Sentosa.
Bloomberg is reporting that MGM recently approached the Lim family to gauge interest in a deal and although no such agreement was reached, MGM “could resume its pursuit of the company.” The report suggests that other potential suitors are also studying Genting Singapore, which has traditionally been Genting Group’s most profitable entity since RWS – one of only two integrated resorts in Singapore alongside Marina Bay Sands – opened in 2010.
It was also one of the group’s few businesses to remain profitable through much of the COVID-19 pandemic, having most recently reported a 13% year-on-year increase in revenues to SG$315 million (US$225 million) and 17% increase in net profit to SG$40 million (US$29 million) in 1Q22.
Genting Singapore’s Malaysian-listed parent, Genting Berhad, owns 53% of the business.
While Bloomberg said MGM has declined to comment on any discussions it may have held regarding Genting Singapore, the US casino firm is already looking to expand its Asian presence and is favored to win a license to develop a US$10 billion integrated resort in Osaka, Japan.
MGM has sold off a large number of US assets in recent years, including MGM Grand, Mandalay Bay, CityCenter and The Mirage.
The company holds a 55.95% stake in MGM China, operator of Macau integrated resorts MGM Macau and MGM Cotai.
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