Genting Offers Cash to Take Genting Malaysia Private
Genting Berhad unveiled a conditional cash offer on October 13 to acquire the remaining shares of Genting Malaysia Berhad it does not already own, aiming to privatise the gaming and hospitality arm. The deal, valued at RM6.74 billion (about S$2.1 billion), would help the diversified group consolidate control over its global casino and resort portfolio as it readies for larger international ambitions.
Why the Move Now?
The bid comes as Genting seeks statutory majority ownership to simplify capital allocation and strengthen its financial position ahead of a potential US$5.5 billion casino project in New York. Genting’s interest in downstate gaming licensing continues to be a cornerstone of its growth strategy, and greater control of Genting Malaysia would enable more coordinated investment and efficiency.
Deal Structure and Premium
Genting currently holds roughly 49.4% of Genting Malaysia. The offer prices Genting Malaysia shares at RM2.35, a premium of 9.8% over the last traded price of RM2.14 before the stocks were suspended on October 13. The bid is conditional upon Genting obtaining more than 50% of Genting Malaysia’s shares and will be financed with up to RM6.3 billion in debt financing, supplemented by internal cash flows.
Potential Delisting and Regulatory Hurdles
Genting signalled that it does not intend to maintain Genting Malaysia’s listing should public shareholding fall below regulatory thresholds. If it crosses the 90% ownership mark, the conglomerate may pursue delisting or compulsory acquisition options. The transaction is expected to close by the end of 2025, subject to approval from the Securities Commission Malaysia and other customary conditions.
Valuation and Market Context
Analysts view the offer’s valuation as a meaningful, though not outsized, premium compared with Genting Malaysia’s six-month average price. The deal implies multiples around 9.1 times EV/EBITDA, 53 times earnings, and roughly 1.12 times book value using 2024 audited figures. Though Genting shares have retraced somewhat in 2025 amid earnings pressures and cost headwinds, the offer underscores Genting’s intent to streamline its corporate structure to fund big-ticket ventures.
Genting’s Portfolio and Growth Ambitions
Genting Malaysia owns Resorts World Genting in Malaysia and operates casinos in the United States, Britain, the Bahamas, and Egypt. Controlling Genting Malaysia could simplify capital allocation for large-scale projects, including the New York downstate casino project where the US unit is bidding for a license. The move aligns with Genting’s broader strategy to fortify its gaming empire while navigating regulatory and competitive landscapes across multiple jurisdictions.
What This Means for Shareholders and Markets
For Genting Malaysia shareholders, the offer provides a clear exit price and a premium to current trading levels, along with a path to liquidity should the bid progress to completion. For Genting, the deal promises a cleaner balance sheet and greater strategic flexibility to back major investments, including potential expansions in the United States and beyond. Investors will be watching for regulatory timing, the performance of Genting Malaysia’s asset base, and how the parent company manages debt and cash flow in a tighter financing environment.
Next Steps
Trading in Genting and Genting Malaysia shares will resume on October 14 as the market digests the terms. If approved, the transaction could reshape the ownership structure of Genting’s core asset in Malaysia and set the stage for faster execution of its global growth plan, including potential US market opportunities and ongoing expansions in hospitality and entertainment.
