KUALA LUMPUR, Genting Bhd has proposed to privatise its subsidiary Genting Malaysia Bhd through a RM6.7 billion buyout offer valued at RM2.35 per share.
According to a takeover notice filed with Bursa Malaysia on Monday, the offer represents a 9.8% premium over Genting Malaysia’s last traded price of RM2.14 before the stock was suspended last Friday. The deal will be fully in cash, with no share-swap component. The offer is conditional upon Genting securing more than 50% of Genting Malaysia’s voting shares. The group currently owns 49.36%.
If successful, the move will see Genting Malaysia — listed for nearly four decades — withdrawn from Bursa Malaysia. It would also mark one of the largest privatisation exercises in recent years, following Malaysia Airports Holdings Bhd’s RM12 billion takeover earlier this year.
The timing of the buyout coincides with Genting Malaysia’s bid for a casino licence in New York, part of its US$5.5 billion (RM23.2 billion) integrated resort project in Queens. A decision is expected by Dec 1, with licence awards due by year-end.
Analysts, however, are sceptical of the offer. UOB Kay Hian’s Jack Goh described the RM2.35 price as “unattractive”, noting it is below average valuations and about 20% lower than the stock’s 2024 peak. He added that it does not reflect potential upside from the pending New York licence and the stock’s high liquidity.
Genting Malaysia’s shares have fallen over 5% year to date and continue to trade below pre-pandemic levels. Most analysts remain cautious, with 11 ‘hold’, four ‘sell’, and three ‘buy’ calls, and an average target price of RM2.06, according to Bloomberg data.
Both Genting and Genting Malaysia will resume trading on Tuesday. Genting Malaysia, listed since 1989, operates the group’s flagship Resorts World Genting, along with casinos in the US, UK, and Egypt.
