Genting Shares Jump After Take-Private Offer for Genting Malaysia
By Ying Xian Wong
Genting shares jumped Tuesday morning, after the conglomerate launched a $1.6 billion conditional voluntary takeover offer for listed affiliate Genting Malaysia.
Shares of Genting rose as much as 7% and were recently up 6.6% at 3.05 ringgit, trimming its year-to-date losses to about 21%. Genting Malaysia gained 8.9% to 2.11 ringgit. Shares of both companies were suspended from trading on Monday pending the material announcement.
Genting said in a filing to the stock exchange on Monday that it is offering 2.35 ringgit a share for the 50.64% stake, or 2.9 billion shares, that it doesn't already hold in the affiliate, valuing the deal at 6.74 billion ringgit.
Genting, which plans to fund the deal with loans and internal funds, aims to boost its stake in Genting Malaysia, consolidate financials and support major projects, including the proposed $5.5 billion New York integrated resort tied to its casino license bid.
However, analysts are cautious on Genting's plan to take Genting Malaysia private.
Hong Leong Investment Bank said the transaction could weigh on Genting's near-term earnings and balance sheet due to higher interest expenses and added debt. However, analyst Chee Kok Siang maintained a neutral stance on the offer price, citing potential value gains if Genting secures the New York gambling license.
CGS International said Genting could raise its stake above its current holding, but it is unlikely to succeed in taking Genting Malaysia private. Most shareholders are still facing paper losses, and the offer price is below Genting Malaysia's 2.50 ringgit to 3.00 ringgit share price from 2022-2024, analyst Chong Tjen-San said in a note.
Maybank Investment Bank said the deal looks costly upfront. However, Genting could see an earnings boost of up to 51% if it gains full control of Genting Malaysia and benefits from potential catalysts such as its Miami land sale, Empire Resorts' non-gambling asset disposals and a possible New York casino license win, analyst Yin Shao Yang said in a note.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
October 13, 2025 22:24 ET (02:24 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy for the Long-Term While They’re Still Undervalued
6 ETFs To Diversify Away From AI
Why This Vanguard ETF Is One of the Best
The Best AI Stocks to Buy Now
United States