Full Acquisition Of Genting Malaysia For Rm6 7 Bil Will Bolster Global Gaming Expansion

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YESTERDAY, GenT (Genting Bhd) announced its intention to undertake a conditional voluntary take-over offer to acquire all the remaining shares in GenM (Genting Malaysia) that it does not already own, at RM2.35 per share (or a total cash consideration of RM6.7 bil), representing a 9.8% premium to the last closing price. 

“The offer will only become unconditional if GenT receives sufficient acceptances to raise its total shareholding above 50% of GenM’s issued shares (excluding treasury shares) within the offer period,” said Hong Leong Investment Bank (HLIB).
As at 10 Oct 2025, GenT holds 49.4% equity stake in GenM. The exact closing date will be announced later, in conjunction with the formal offer document to be dispatched to GenM shareholders within 21 days of this announcement.
The offer will subsequently remain open for at least 21 days, with the acceptance period closing at 5.00 p.m. on the stated date, unless extended or withdrawn.

Barring unforeseen circumstances, completion is expected by quarter four of 2025 (4Q2025). Notably, GenT has indicated that it is not desirous of maintaining GenM’s listing status on Bursa Malaysia, suggesting a potential delisting of GenM post-completion of the take-over offer.

As at 10 Oct 2025, GenM’s subsidiary, Genting New York LLC, is one of the four remaining contenders for up to three downstate New York gaming licenses. If successful, the project will require significant capital investment.
GenT believes that gaining control over GenM will strengthen its overall financial position and network, supporting the development of this major initiative.

The total cash consideration of RM6.7 bil will be fully funded through a combination of debt financing of up to RM6.3 bil and internally generated funds. Upon the completion of the take-over offer, GenT’s ownership in GenM will increase from current 49.4% to 100%. 
Despite GenT’s offer of RM2.35 per share exceeding our previous SOP-derived target price (TP) for GenM of RM2.06, the potential acquisition of one of the three downstate New York gaming licenses could make the valuation appear reasonable. 
Based on HLIB’s estimates, securing a full casino license could unlock an additional RM0.31 per share in value for GenM, implying a potential TP of RM2.37. HLIB therefore maintains a neutral view on this development and maintains buy for GenT. — Focus Malaysia

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