Genting Shares Close Lower After Take-Private Bid for Genting Malaysia Fails — Update
By Amanda Lee
Genting Bhd. shares surrendered early gains and closed lower Tuesday, after the conglomerate's bid to take listed affiliate Genting Malaysia private was unsuccessful.
Shares of Genting closed 2.1% lower after rising as much as 3.9% intraday to 3.49 ringgit, equivalent to $0.84, while Genting Malaysia closed 4.3% lower after gaining as much as 1.7% to 2.39 ringgit.
In October, Genting offered 2.35 ringgit a share for the 50.64% stake, or 2.9 billion shares, that it doesn't already hold in Genting Malaysia.
Genting raised its stake in Genting Malaysia to 73.13% as of the closure of the take-private offer on Dec. 1, according to a filing Monday. Genting needs to hold a 75% stake in Genting Malaysia to delist it.
"Given the absence of any follow-up move to raise its stake beyond 73%, we believe [Genting] is likely comfortable with its current shareholding in [Genting Malaysia] and is unlikely to pursue further acquisitions in the near term," DBS Group Research analysts said in a note.
Separately, Genting Malaysia's wholly owned Genting New York LLC subsidiary, which operates Resorts World New York City, received the New York Gaming Facility Location Board's nod to operate a casino, according to a statement on Monday. The New York Gaming Commission still must review Genting's finances before officially awarding the license.
Genting Malaysia placed a bid for a downstate New York casino license in June, detailing a $5.5 billion plan to convert Resorts World New York City into a full-fledged casino.
Analysts said the successful casino bid bodes well for Genting Malaysia's earnings outlook.
Genting Malaysia's net profit generated by its expansion is estimated to "peak at a whopping" 1.93 billion ringgit in 2030, said Maybank Investment Bank analyst Yin Shao Yang in a note.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
December 02, 2025 05:16 ET (10:16 GMT)
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