Genting Bhd plans to buy out and delist its unit Genting Malaysia Bhd in a deal worth RM6.7 billion.
The offer to minority shareholders is equivalent to RM2.35 per share, according to the takeover notice posted to Bursa Malaysia on Monday. The price tag is a premium of nearly 10% to Genting Malaysia's last price of RM2.14 last Friday before trading of the stock was suspended for the announcement.
The offer is conditional upon Genting receiving enough acceptance to raise its shareholding above 50% of the voting shares in Genting Malaysia.
Currently, Genting holds a 49.36% stake in Genting Malaysia.
The privatisation, if successful, would be the largest acquisition in more than four years and comes at a time when Genting Malaysia is bidding for a casino licence in New York as part of a US$5.5 billion resort development in Queens.
Shares of Genting Malaysia have also largely remained below pre-Covid levels, partly dragged by related-party transaction concerns after the company took over the loss-making Empire Resorts owned by the founding family of the Genting group.
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Both Genting and Genting Malaysia have also been kicked out of the FBM KLCI, the country’s benchmark equity index.
