Genting Launches RM6.74 Billion Bid to Privatise Genting Malaysia

KUALA LUMPUR – Genting Bhd has unveiled plans to privatise its subsidiary, Genting Malaysia Bhd (GENM), through a RM6.74 billion buyout offer to minority shareholders.

The company is offering RM2.35 per share for 2.87 billion shares, representing a 50.64 per cent stake in GENM. The offer carries an 18.5 per cent premium over the company’s recent five-day average market price and will be financed through RM6.3 billion in debt and internal funds.

Genting Privatisation

Genting said the move will enable GENM to pursue long-term strategic goals “without the pressures of short-term market expectations.” The deal will be carried out via a selective capital reduction and repayment exercise, subject to shareholder and regulatory approvals.

Upon successful completion, Genting plans to delist GENM from Bursa Malaysia to consolidate control and streamline decision-making. The group views the privatisation as key to enhancing its financial profile, particularly as it pursues a US$5.5 billion integrated resort project in New York.

CIMB Investment Bank Bhd has been appointed as the principal adviser for the exercise.

Business News