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Read Full BioGenting has announced a conditional cash offer of $1.6 billion for all shares it does not already own in its subsidiary, Genting Malaysia. Genting Berhad, the parent holding company, owns just under 50% of the shares in its Malaysian subsidiary and will make the offer at RM2.53 ($0.60) per share.
The announcement of the offer resulted in the suspension of trading. The shares were trading at RM2.14 ($0.51) at the time of the announcement. The company stated that the deal will be “fully satisfied via a combination of debt financing of up to approximately RM6.3 billion and internally generated funds.”
The news of the offer lifted Genting’s stock by 7% at the close of trading.
Genting Raising Funds for $5.5B NYC Casino
The deal, worth RM6.74 billion ($1.6 billion), comes as Genting enters a period of consolidation following the launch of several ambitious new projects. That includes a bid for a downstate New York casino. There, the company is one of four applicants competing for up to three licenses.
As part of those proposals, the company plans a $5.5 billion expansion and upgrade of its existing racino in Queens, located on the former Aqueduct Racetrack. The bid would entail a significant transformation of the current site. The company will convert it into a new, fully-fledged casino, which would become the largest in the US by 2030.
The casino would also be the first to open, compared to any other bidder. Genting has a target opening day in mid-2026. The initial phase would see 4,000 slot machines and 150 table games included on the site. It will also eventually include over 30 restaurants and bars. Upon completion, the casino floor will expand to 500,000 square feet, featuring 6,000 slot machines and 800 gaming tables.
Many consider the Genting bid as one of the frontrunners, along with MGM Resorts’ Empire City Casino in Yonkers. That’s because both are already operating as smaller-scale gambling venues with an existing history in the city and local community.
Still, New York State Gaming Commission Chairman Brian O’Dwyer has indicated that there are no frontrunners. O’Dwyer also warned that the state will heavily factor in violations in other jurisdictions. Genting was subject to a high-profile AML enforcement fine in Nevada earlier this year.
The company will likely know whether it has secured a license by the end of the year.
Genting Seeking New Capital Investment
The filing on Monday stated that the new deal aimed to solidify the company’s financial position ahead of the move. The company said, “If the bid is successful, significant capital investment is required to implement the above-mentioned proposal.”
“In this regard, Genting believes that with control over Genting Malaysia clearly established through its majority ownership of Genting Malaysia shares, the overall financial profile of Genting Malaysia will be further enhanced as Genting will be better placed to lend the Genting group’s financial strength and network to support the development of this significant project.”
The company also benefited from a strong Q2. After the results were published, it said: “Despite prevailing trading environment uncertainties, the global tourism outlook is expected to remain broadly positive.”
Genting shares have declined by approximately 26% over the past year. The offer will represent a premium of just under 10% on the currently traded value of the shares.
