Integrated resorts giant Genting has set out plans to take full control of Genting Malaysia in a deal worth approximately 6.74 billion ringgit ($1.6 billion).
Genting will make a conditional cash offer for all shares in the business, according to Reuters. Subject to approvals, the offer is expected to complete by the end of 2025.
The conglomerate already holds around 49.4% of all shares in the business. It offered 2.35 ringgit per share, a 9.8% premium on the price prior to stocks being suspended on October 13.
The offer is conditional on Genting securing over 50% of the entity’s shares. The group intends to fund the purchase with debt financing and internal cash.
Genting Seeks Stronger Financial Position With Malaysia Deal
Making the offer, Genting said this would consolidate control of its casino and hospitality arm. It added that this would bolster its overall finances.
The group is currently bidding to secure a new land-based casino license in New York. Genting is one of several parties competing for three casino licenses in or around New York City, which are to be awarded by year’s end.
Genting shares are down around 26% for the year-to-date, with Genting Malaysia shares also down 5.3%.
