Genting Says It Is Seeking Control, Not a Privatisation, of Genting Malaysia

Genting Bhd is not trying to privatise Genting Malaysia Bhd, according to comments from parent company chief executive and president Tan Kong Han reported by Sinchew Daily. He said the earlier takeover move was aimed at securing control of the unit rather than taking it private.

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Takeover Intent Clarified

Tan made the remarks during Genting Bhd’s annual general meeting on Thursday, where shareholder questions included the group’s plans for Genting Malaysia. He indicated that it was lucky that Genting Bhd has already raised its stake in the subsidiary, even though it is currently less than the 75% required for privatisation. The two companies are both listed on the Malaysian stock market.

The possibility of privatisation or delisting of Genting Malaysia has previously come up before when the parent firm offered a conditional takeover valued at approximately US$1.59 billion in October 2025. In his most recent remarks, Tan said that the purpose of the deal was not privatisation but raising its holding to over 50%.

Before the offer, Genting Bhd held a 49.36% stake in Genting Malaysia, according to a November 3 filing by the subsidiary on the takeover exercise. That filing said the move was designed to allow the offeror to obtain statutory control of the offeree.

Global Casino Footprint

Genting Malaysia operates casino properties in several markets, including Malaysia’s casino monopoly Resorts World Genting, as well as venues in the United States, the Bahamas, the United Kingdom and Egypt. The November 3 filing also said Genting Bhd did not intend to maintain the listing status of Genting Malaysia on Bursa Securities’ main market.

The same document stated that if the offeror received enough valid acceptances to delist or privatise the offeree, the parent intended to use the opportunity to list its gaming, leisure and hospitality business in the US, held under Resorts World Las Vegas LLC, together with the offeree group’s US business, to create enough scale for a US listing.

US Projects And Balance Sheet

Tan also spoke about the group’s US expansion, including what he referred to as the New York project, understood to mean Resorts World New York City. He said the property would soon surpass the performance of Resorts World Genting in Malaysia, although the report did not specify the measure being used.

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Resorts World New York City began operating as downstate New York’s first full-service licensed casino on April 28 after previously being an electronic-gaming facility. The venue now includes live-dealer table play, and further expansion is planned under its new licence. Maybank Investment Bank Bhd had said in a May note that the property could eclipse Resorts World Genting in the long term.

Sinchew Daily also cited Tan as saying Genting Bhd currently incorporates Genting Malaysia’s financial performance into its own balance sheet through a management services agreement, but does not have a similar arrangement for Resorts World New York City. He said that once the New York project outperforms Genting Highlands, Genting Bhd would no longer be able to integrate Genting Malaysia’s statements, which would bring very drastic changes to the balance sheet and require management action.

Capital Allocation And Market Support

Tan also addressed shareholder questions about why Genting Bhd is not buying back shares. He said the company must be cautious in allocating its limited cash resources and noted that shareholders are inclined toward cash dividends.

He added that both Genting Bhd and Genting Malaysia were removed from the MSCI Malaysia index in 2025, a point that was raised at the AGM. Tan acknowledged that the group’s share price and trading volume were below expectations and that demand from Malaysia’s domestic investment institutions had declined. He also noted that some major funds, including the Employees Provident Fund, are not permitted to invest in gaming companies.

According to Tan, the group needs to restructure itself into a market that values gaming-sector investment, which is why it is investing in the US. He said the US is a gaming jurisdiction with rigorous regulation, and added that while Malaysian investors remain bearish on the group, international banks, including some from New York, have supported its syndicated credit facilities. He also said the group’s US-dollar bond issuance received good feedback.

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Source: GGR Asia