Genting Berhad announces $1.6 billion takeover proposal of Genting Malaysia | Yogonet International

Summary

Genting Berhad has proposed a RM6.74 billion (about US$1.6 billion) cash offer to acquire all remaining shares in its listed subsidiary Genting Malaysia Berhad that it does not already own. The offer is RM2.35 per share for roughly 2.87 billion shares (50.64% stake); Genting currently holds 49.36%.

The plan is conditional on regulatory approval from the Securities Commission Malaysia and completion is expected in Q4 2025. Genting intends to fund the purchase via up to RM6.3 billion in debt and internal funds. AmInvestment Bank Berhad is the principal adviser on the deal.

Genting says full ownership would allow consolidation of Genting Malaysia’s accounts, streamlined decision-making and improved capital allocation — including support for a proposed US$5.5 billion integrated resort project in New York. The offer carries a premium of about 9.8%–22.9% to recent trading prices and could lead to delisting if acceptances reach 90% or more, invoking compulsory acquisition rules.

Key Points

Offer size: RM6.74 billion (≈US$1.6 billion); price RM2.35 per share for ~2.87bn shares (50.64%).
Funding: up to RM6.3 billion in debt financing plus internally generated funds.
Conditional on regulatory approval; expected completion by Q4 2025.
Premium: 9.8%–22.9% over recent Genting Malaysia trading prices.
If acceptances exceed 90% Genting may delist Genting Malaysia and use compulsory acquisition provisions.
Strategic rationale: consolidate accounts, streamline decisions and free capital to back large projects, notably a proposed US$5.5bn New York integrated resort.
Valuation metrics (based on 2024 audited numbers): ~9.1x EV/EBITDA, 53x earnings, 1.12x book value.
Genting Malaysia 2024: profit after tax and minority interests RM251.2m; net assets RM11.9bn. Q2 revenue rose 9.3% YoY to RM2.92bn; H1 revenue RM5.51bn (+1.5% YoY).
Share moves: Genting (the parent) shares down ~26% YTD; Genting Malaysia down ~5.3%.

Context and relevance

The move is a classic corporate consolidation: the parent wants full control to centralise decision-making and reallocate capital for large-scale investments. For the gaming and hospitality sector this signals a push to mobilise group resources behind major projects (notably the New York resort) and simplifies governance across multiple jurisdictions. Investors and regulators will watch the financing, the approval process and any delisting attempt closely, as each affects minority shareholders, market liquidity and regional M&A dynamics.

Why should I read this?

Short version: Genting wants full control to speed up big bets (think a US$5.5bn New York resort) and to tidy up its balance sheet and decision-making. If you follow gaming M&A, regional regulators or Genting’s investments — this explains the how, the money and the risks. Quick, useful and to the point.

Author style

Punchy: this isn’t just another corporate filing. It’s a strategic pivot with real consequences for shareholders, competitors and regulators. If you care about capital allocation in global gaming or the fate of Resorts World projects, read the detail — it matters.